1.1 	A bill for an act
1.2 	relating to state government operations; establishing a biennial budget; 
1.3 	appropriating money for the legislature, certain constitutional offices, and state 
1.4 	agencies, the Minnesota Historical Society, the Minnesota Humanities Center, 
1.5 	certain retirement accounts, certain offices, departments, boards, commissions, 
1.6 	councils, general contingent account, and tort claims; transferring certain funds; 
1.7 	raising fees; making changes to policy provisions for state government operations 
1.8 	and local government policy; modifying state personnel management policies; 
1.9 	modifying business filing and fraud policies; requiring reports;amending Minnesota 
1.10 	Statutes 2024, sections 3.971, subdivisions 2, 8a, 9; 11A.24, by adding a 
1.11 	subdivision; 13.485, subdivision 1, by adding a subdivision; 13D.02, subdivisions 
1.12 	1, 4; 14.48, subdivisions 1, 2; 14.62, subdivisions 1, 2a, by adding a subdivision; 
1.13 	16A.152, subdivision 8; 16B.055, subdivision 1; 16B.335, subdivision 2; 16B.48, 
1.14 	subdivision 4; 16B.54, subdivision 2; 16B.97, subdivision 1; 16B.98, subdivisions 
1.15 	1, 4; 16B.981, subdivision 4; 16B.991, subdivision 2; 16C.05, by adding a 
1.16 	subdivision; 16C.137, subdivision 2; 16C.16, subdivisions 2, 6, 6a, 7; 16D.09, 
1.17 	subdivision 1; 43A.01, subdivision 3; 43A.02, subdivision 14; 43A.04, subdivisions 
1.18 	1, 4, 8; 43A.05, subdivision 3; 43A.08, subdivisions 1a, 4; 43A.11, subdivision 9; 
1.19 	43A.121; 43A.15, subdivisions 4, 7, 12, 14; 43A.17, subdivision 5; 43A.181, 
1.20 	subdivision 1; 43A.1815; 43A.19, subdivision 1; 43A.23, subdivisions 1, 2; 
1.21 	43A.231, subdivisions 3, 4, 6; 43A.24, subdivisions 1a, 2; 43A.27, subdivisions 
1.22 	2, 3; 43A.33, subdivision 3; 43A.346, subdivisions 2, 6; 43A.36, subdivision 1; 
1.23 	43A.421; 155A.23, by adding a subdivision; 155A.27, subdivision 2; 155A.2705, 
1.24 	subdivision 3; 155A.30, subdivision 2; 222.37, subdivision 1; 240.131, subdivision 
1.25 	7; 302A.153; 303.06, by adding a subdivision; 303.21; 308A.131, subdivision 2; 
1.26 	308B.215, subdivision 2; 317A.151, subdivision 2; 321.0206; 322C.0201, 
1.27 	subdivision 4; 322C.0802; 323A.0101; 326.05; 326.10, subdivisions 1, 2, 10; 
1.28 	326.111, subdivisions 3, 4, 5, by adding a subdivision; 326A.03, subdivision 6, 
1.29 	by adding subdivisions; 326A.14; 331A.10, subdivision 2; 349A.01, by adding a 
1.30 	subdivision; 349A.06, subdivisions 2, 4, 11; 367.36, subdivision 1; 383C.035; 
1.31 	412.02, subdivision 3; 412.591, subdivision 3; 466.01, subdivision 1; 477A.017, 
1.32 	subdivision 3; 609.48, subdivision 1; Laws 2023, chapter 62, article 1, sections 
1.33 	11, subdivision 2; 13; proposing coding for new law in Minnesota Statutes, chapters 
1.34 	1; 15; 16B; 300; 383A; 471; repealing Minnesota Statutes 2024, sections 16B.328, 
1.35 	subdivision 2; 16B.45; 16C.36; 43A.315; 43A.317, subdivisions 1, 2, 3, 5, 6, 7, 
1.36 	8, 9, 10, 12; 43A.318, subdivisions 1, 2, 4, 5; 211B.06; 211B.08; 383C.07; 383C.74, 
1.37 	subdivisions 1, 2, 3, 4; 471.9998; Laws 2024, chapter 120, article 3, section 2; 
1.38 	Minnesota Rules, part 1105.7900, item D.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	STATE GOVERNMENT AND ELECTIONS APPROPRIATIONS

2.4	Section 1. STATE GOVERNMENT AND ELECTIONS APPROPRIATIONS.
 	
2.5 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
2.6 	and for the purposes specified in this article. The appropriations are from the general fund, 
2.7 	or another named fund, and are available for the fiscal years indicated for each purpose. 
2.8 	The figures "2026" and "2027" used in this article mean that the appropriations listed under 
2.9 	them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. 
2.10 	"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" 
2.11 	is fiscal years 2026 and 2027.

2.12				APPROPRIATIONS
	
2.13				Available for the Year
	
2.14				Ending June 30
	
2.15					2026
		2027

2.16	Sec. 2. LEGISLATURE

2.17	Subdivision 1.Total Appropriation
 	$
	107,228,000
	$
	113,066,000
	
2.18 	The amounts that may be spent for each 
2.19 	purpose are specified in the following 
2.20 	subdivisions. The base for this appropriation 
2.21 	is $111,377,000 in fiscal year 2028 and each 
2.22 	fiscal year thereafter.

2.23	Subd. 2.Senate
 		38,238,000
		39,690,000

2.24	Subd. 3.House of Representatives
 		36,922,000
		39,985,000
	
2.25 	The base for this appropriation is $38,296,000 
2.26 	in fiscal year 2028 and each fiscal year 
2.27 	thereafter.

2.28	Subd. 4.Legislative Coordinating Commission
 		32,068,000
		33,391,000
	
2.29 	Legislative Auditor. $12,076,000 the first 
2.30 	year and $12,567,000 the second year are for 
2.31 	the Office of the Legislative Auditor.
3.1 	Revisor of Statutes. $9,094,000 the first year 
3.2 	and $9,466,000 the second year are for the 
3.3 	Office of the Revisor of Statutes.
3.4 	Legislative Reference Library. $2,278,000 
3.5 	the first year and $2,369,000 the second year 
3.6 	are for the Legislative Reference Library.
3.7 	Legislative Budget Office. $2,800,000 the 
3.8 	first year and $2,965,000 the second year are 
3.9 	for the Legislative Budget Office.

3.10
3.11	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	9,231,000
	$
	9,231,000
	
3.12 	(a) $19,000 each year is for necessary 
3.13 	expenses in the normal performance of the 
3.14 	governor's and lieutenant governor's duties for 
3.15 	which no other reimbursement is provided.
3.16 	(b) By September 1 of each year, the 
3.17 	commissioner of management and budget shall 
3.18 	report to the chairs and ranking minority 
3.19 	members of the legislative committees with 
3.20 	jurisdiction over state government finance any 
3.21 	personnel costs incurred by the Offices of the 
3.22 	Governor and Lieutenant Governor that were 
3.23 	supported by appropriations to other agencies 
3.24 	during the previous fiscal year. The Office of 
3.25 	the Governor shall inform the chairs and 
3.26 	ranking minority members of the committees 
3.27 	before initiating any interagency agreements.

3.28	Sec. 4. STATE AUDITOR
 	$
	14,493,000
	$
	14,734,000

3.29	Sec. 5. ATTORNEY GENERAL
 	$
	50,135,000
	$
	50,432,000

3.30	Appropriations by Fund
	
3.31		2026
	2027
	
3.32	General
	46,719,000
	47,016,000
	
3.33
3.34	State Government 
Special Revenue
	3,021,000
	3,021,000
	
4.1	Environmental
	145,000
	145,000
	
4.2	Remediation
	250,000
	250,000
	
4.3 	The general fund base for this appropriation 
4.4 	is $46,657,000 in fiscal year 2029 and each 
4.5 	fiscal year thereafter.

4.6	Sec. 6. SECRETARY OF STATE
 	$
	10,426,000
	$
	10,426,000
	
4.7 	The base for this appropriation is $10,356,000 
4.8 	in fiscal year 2028 and $10,426,000 in fiscal 
4.9 	year 2029.

4.10	Sec. 7. STATE BOARD OF INVESTMENT
 	$
	139,000
	$
	139,000

4.11	Sec. 8. ADMINISTRATIVE HEARINGS
 	$
	11,110,000
	$
	11,709,000

4.12	Appropriations by Fund
	
4.13		2026
	2027
	
4.14	General
	705,000
	715,000
	
4.15
4.16	Workers' 
Compensation
	10,405,000
	10,994,000

4.17
4.18	Sec. 9. INFORMATION TECHNOLOGY 
SERVICES
 	$
	10,939,000
	$
	11,150,000
	
4.19 	During the biennium ending June 30, 2027, 
4.20 	the Department of Information Technology 
4.21 	Services must not charge fees to a public 
4.22 	noncommercial educational television 
4.23 	broadcast station eligible for funding under 
4.24 	Minnesota Statutes, chapter 129D, for access 
4.25 	to the state broadcast infrastructure. If the 
4.26 	access fees not charged to public 
4.27 	noncommercial educational television 
4.28 	broadcast stations total more than $400,000 
4.29 	for the biennium, the office may charge for 
4.30 	access fees in excess of these amounts.

4.31	Sec. 10. ADMINISTRATION

4.32	Subdivision 1.Total Appropriation
 	$
	37,579,000
	$
	38,281,000
	
5.1 	The amounts that may be spent for each 
5.2 	purpose are specified in the following 
5.3 	subdivisions.

5.4	Subd. 2.Government and Citizen Services
 		18,310,000
		18,117,000
	
5.5 	Council on Developmental Disabilities.
5.6 	$222,000 each year is for the Council on 
5.7 	Developmental Disabilities.
5.8 	State Agency Accommodation 
5.9 	Reimbursement. $200,000 each year may be 
5.10 	transferred to the accommodation account 
5.11 	established in Minnesota Statutes, section 
5.12 	16B.4805.
5.13 	Office of Enterprise Translations.
5.14 	$1,010,000 each year is for the Office of 
5.15 	Enterprise Translations. $100,000 each year 
5.16 	may be transferred to the language access 
5.17 	service account established in Minnesota 
5.18 	Statutes, section 16B.373.
5.19 	Grants. $250,000 the first year is for a grant 
5.20 	to the Minnesota Orchestra for arts education 
5.21 	musical performance in the schools of 
5.22 	Minnesota. Any unencumbered balance in the 
5.23 	first year does not cancel and is available for 
5.24 	the second year.
5.25 	$220,000 the first year is for a grant to History 
5.26 	Theatre to perform a play celebrating Hmong 
5.27 	arts and culture.

5.28	Subd. 3.Strategic Management Services
 		2,676,000
		2,716,000

5.29	Subd. 4.Fiscal Agent
 		16,593,000
		17,448,000
	
5.30 	The appropriations under this section are to 
5.31 	the commissioner of administration for the 
5.32 	purposes specified.
6.1 	In-Lieu of Rent. $12,139,000 the first year 
6.2 	and $12,994,000 the second year are for space 
6.3 	costs of the legislature and veterans 
6.4 	organizations, ceremonial space, and 
6.5 	statutorily free space.
6.6 	Public Television. (a) $1,550,000 each year 
6.7 	is for matching grants for public television.
6.8 	(b) $250,000 each year is for public television 
6.9 	equipment grants under Minnesota Statutes, 
6.10 	section 129D.13.
6.11 	(c) $250,000 each year is for block grants to 
6.12 	public television under Minnesota Statutes, 
6.13 	section 129D.13. Of this amount, up to three 
6.14 	percent is for the commissioner of 
6.15 	administration to administer the grants.
6.16 	(d) The commissioner of administration must 
6.17 	consider the recommendations of the 
6.18 	Minnesota Public Television Association 
6.19 	before allocating the amounts appropriated in 
6.20 	paragraphs (a) and (b) for equipment or 
6.21 	matching grants.
6.22 	Public Radio. (a) $1,242,000 each year is for 
6.23 	community service grants to public 
6.24 	educational radio stations. This appropriation 
6.25 	may be used to disseminate emergency 
6.26 	information in foreign languages. Any 
6.27 	unencumbered balance does not cancel at the 
6.28 	end of the first year and is available for the 
6.29 	second year. The Association of Minnesota 
6.30 	Public Educational Radio Stations may use up 
6.31 	to four percent of this appropriation for costs 
6.32 	that are directly related to and necessary for 
6.33 	the administration of these grants.
7.1 	(b) $142,000 each year is for equipment grants 
7.2 	to public educational radio stations. This 
7.3 	appropriation may be used for the repair, 
7.4 	rental, purchase, upgrades of equipment and 
7.5 	software, including computer software, 
7.6 	applications, firmware, and equipment under 
7.7 	$500.
7.8 	(c) $1,020,000 each year is for equipment 
7.9 	grants to Minnesota Public Radio, Inc., 
7.10 	including upgrades to Minnesota's Emergency 
7.11 	Alert and AMBER Alert Systems.
7.12 	(d) The appropriations in paragraphs (a) to (c) 
7.13 	may not be used for indirect costs claimed by 
7.14 	an institution or governing body.
7.15 	(e) The commissioner of administration must 
7.16 	consider the recommendations of the 
7.17 	Association of Minnesota Public Educational 
7.18 	Radio Stations before awarding grants under 
7.19 	Minnesota Statutes, section 129D.14, using 
7.20 	the appropriations in paragraphs (a) and (b). 
7.21 	No grantee is eligible for a grant unless they 
7.22 	are a member of the Association of Minnesota 
7.23 	Public Educational Radio Stations on or before 
7.24 	July 1, 2025.
7.25 	(f) Any unencumbered balance remaining the 
7.26 	first year for grants to public television or 
7.27 	public radio stations does not cancel and is 
7.28 	available for the second year.

7.29
7.30	Sec. 11. CAPITOL AREA ARCHITECTURAL 
AND PLANNING BOARD
 	$
	464,000
	$
	472,000

7.31
7.32	Sec. 12. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	51,688,000
	$
	52,709,000

7.33	Sec. 13. REVENUE

7.34	Subdivision 1.Total Appropriation
 	$
	215,761,000
	$
	217,073,000

8.1	Appropriations by Fund
	
8.2		2026
	2027
	
8.3	General
	211,501,000
	212,813,000
	
8.4	Health Care Access
	1,760,000
	1,760,000
	
8.5
8.6	Highway User Tax 
Distribution
	2,195,000
	2,195,000
	
8.7	Environmental
	305,000
	305,000
	
8.8 	The general fund base for this appropriation 
8.9 	is $212,297,000 in fiscal year 2028 and 
8.10 	$212,197,000 in fiscal year 2029 and each 
8.11 	fiscal year thereafter.

8.12	Subd. 2.Tax System Management
 		179,976,000
		180,553,000

8.13	Appropriations by Fund
	
8.14	General
	175,716,000
	176,293,000
	
8.15	Health Care Access
	1,760,000
	1,760,000
	
8.16
8.17	Highway User Tax 
Distribution
	2,195,000
	2,195,000
	
8.18	Environmental
	305,000
	305,000
	
8.19 	The general fund base for this appropriation 
8.20 	is $175,777,000 in fiscal year 2028 and 
8.21 	$175,677,000 in fiscal year 2029 and each 
8.22 	fiscal year thereafter.
8.23 	Taxpayer Assistance and Tax Credit 
8.24 	Outreach Grants. (a) $1,250,000 each year 
8.25 	is for taxpayer assistance grants under 
8.26 	Minnesota Statutes, section 270C.21, 
8.27 	subdivision 3. The unencumbered balance in 
8.28 	the first year does not cancel but is available 
8.29 	for the second year.
8.30 	(b) $1,500,000 each year is for tax credit 
8.31 	outreach grants under Minnesota Statutes, 
8.32 	section 270C.21, subdivision 4.

8.33	Subd. 3.Debt Collection Management
 		35,785,000
		36,520,000

8.34	Sec. 14. GAMBLING CONTROL
 	$
	6,334,000
	$
	6,334,000
	
9.1 	These appropriations are from the lawful 
9.2 	gambling regulation account in the special 
9.3 	revenue fund.

9.4	Sec. 15. RACING COMMISSION
 	$
	954,000
	$
	954,000
	
9.5 	These appropriations are from the racing and 
9.6 	card playing regulation accounts in the special 
9.7 	revenue fund.

9.8	Sec. 16. STATE LOTTERY
 					
9.9 	Notwithstanding Minnesota Statutes, section 
9.10 	349A.10, subdivision 3, the State Lottery's 
9.11 	operating budget must not exceed $45,000,000 
9.12 	in fiscal year 2026 and $45,000,000 in fiscal 
9.13 	year 2027.

9.14	Sec. 17. AMATEUR SPORTS COMMISSION
 	$
	401,000
	$
	411,000

9.15
9.16	Sec. 18. COUNCIL FOR MINNESOTANS OF 
AFRICAN HERITAGE
 	$
	938,000
	$
	955,000

9.17	Sec. 19. COUNCIL ON LATINO AFFAIRS
 	$
	829,000
	$
	841,000

9.18
9.19	Sec. 20. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	655,000
	$
	665,000

9.20
9.21	Sec. 21. COUNCIL ON LGBTQIA2S+ 
MINNESOTANS
 	$
	737,000
	$
	745,000

9.22	Sec. 22. INDIAN AFFAIRS COUNCIL
 	$
	1,381,000
	$
	1,402,000

9.23
9.24	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

9.25	Subdivision 1.Total Appropriation
 	$
	26,763,000
	$
	27,076,000
	
9.26 	The amounts that may be spent for each 
9.27 	purpose are specified in the following 
9.28 	subdivisions.

9.29	Subd. 2.Operations and Programs
 		26,442,000
		26,755,000
	
9.30 	Notwithstanding Minnesota Statutes, section 
9.31 	138.668, the Minnesota Historical Society may 
9.32 	not charge a fee for its general tours at the 
10.1 	Capitol, but may charge fees for special 
10.2 	programs other than general tours.

10.3	Subd. 3.Fiscal Agent
 		321,000
		321,000

10.4	(a) Global Minnesota
		39,000
		39,000

10.5	(b) Minnesota Air National Guard Museum
		17,000
		17,000

10.6	(c) Hockey Hall of Fame
		100,000
		100,000

10.7	(d) Farmamerica
		115,000
		115,000

10.8	(e) Minnesota Military Museum
		50,000
		50,000
	
10.9 	Any unencumbered balance remaining in this 
10.10 	subdivision the first year does not cancel but 
10.11 	is available for the second year of the 
10.12 	biennium.

10.13	Sec. 24. BOARD OF THE ARTS

10.14	Subdivision 1.Total Appropriation
 	$
	7,798,000
	$
	7,808,000
	
10.15 	The amounts that may be spent for each 
10.16 	purpose are specified in the following 
10.17 	subdivisions.

10.18	Subd. 2.Operations and Services
 		859,000
		869,000

10.19	Subd. 3.Grants Program
 		4,800,000
		4,800,000

10.20	Subd. 4.Regional Arts Councils
 		2,139,000
		2,139,000
	
10.21 	Any unencumbered balance remaining in this 
10.22 	section the first year does not cancel, but is 
10.23 	available for the second year.
10.24 	Money appropriated in this section and 
10.25 	distributed as grants may only be spent on 
10.26 	projects located in Minnesota. A recipient of 
10.27 	a grant funded by an appropriation in this 
10.28 	section must not use more than ten percent of 
10.29 	the total grant for costs related to travel outside 
10.30 	the state of Minnesota.

10.31
10.32	Sec. 25. MINNESOTA HUMANITIES 
CENTER
 	$
	970,000
	$
	970,000
	
11.1 	$500,000 each year is for Healthy Eating, Here 
11.2 	at Home grants under Minnesota Statutes, 
11.3 	section 138.912. No more than three percent 
11.4 	of the appropriation may be used for the 
11.5 	nonprofit administration of the program.

11.6	Sec. 26. BOARD OF ACCOUNTANCY
 	$
	873,000
	$
	887,000

11.7
11.8
11.911.10
	Sec. 27. BOARD OF ARCHITECTURE 
ENGINEERING, LAND SURVEYING, 
LANDSCAPE ARCHITECTURE, 
GEOSCIENCE, AND INTERIOR DESIGN
 	$
	928,000
	$
	943,000

11.11
11.12	Sec. 28. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	3,659,000
	$
	3,716,000

11.13	Sec. 29. BOARD OF BARBER EXAMINERS
 	$
	459,000
	$
	466,000

11.14
11.15	Sec. 30. GENERAL CONTINGENT 
ACCOUNTS
 	$
	2,000,000
	$
	500,000

11.16	Appropriations by Fund
	
11.17		2026
	2027
	
11.18	General
	1,500,000
	-0-
	
11.19
11.20	State Government 
Special Revenue
	400,000
	400,000
	
11.21
11.22	Workers' 
Compensation
	100,000
	100,000
	
11.23 	(a) The general fund base for this 
11.24 	appropriation is $1,500,000 in fiscal year 2026 
11.25 	and each even-numbered fiscal year thereafter. 
11.26 	The base is $0 for fiscal year 2027 and each 
11.27 	odd-numbered fiscal year thereafter.
11.28 	(b) The appropriations in this section may only 
11.29 	be spent with the approval of the governor 
11.30 	after consultation with the Legislative 
11.31 	Advisory Commission pursuant to Minnesota 
11.32 	Statutes, section 3.30.
11.33 	(c) If an appropriation in this section for either 
11.34 	year is insufficient, the appropriation for the 
11.35 	other year is available for it.
12.1 	(d) If a contingent account appropriation is 
12.2 	made in one fiscal year, it shall be considered 
12.3 	a biennial appropriation.

12.4	Sec. 31. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
12.5 	These appropriations are to be spent by the 
12.6 	commissioner of management and budget 
12.7 	according to Minnesota Statutes, section 
12.8 	3.736, subdivision 7. If the appropriation for 
12.9 	either year is insufficient, the appropriation 
12.10 	for the other year is available for it.

12.11
12.12	Sec. 32. MINNESOTA STATE RETIREMENT 
SYSTEM

12.13	Subdivision 1.Total Appropriation
 	$
	15,064,000
	$
	15,154,000
	
12.14 	The amounts that may be spent for each 
12.15 	purpose are specified in the following 
12.16 	subdivisions.

12.17
12.18	Subd. 2.Combined Legislators and 
Constitutional Officers Retirement Plan
 		9,064,000
		9,154,000
	
12.19 	Under Minnesota Statutes, sections 3A.03, 
12.20 	subdivision 2; 3A.04, subdivisions 3 and 4; 
12.21 	and 3A.115.

12.22	Subd. 3.Judges Retirement Plan
 		6,000,000
		6,000,000
	
12.23 	For transfer to the judges retirement fund 
12.24 	under Minnesota Statutes, section 490.123. 
12.25 	This transfer continues each fiscal year until 
12.26 	the judges retirement plan reaches 100 percent 
12.27 	funding as determined by an actuarial 
12.28 	valuation prepared according to Minnesota 
12.29 	Statutes, section 356.214.

12.30
12.31	Sec. 33. PUBLIC EMPLOYEES RETIREMENT 
ASSOCIATION
 	$
	25,000,000
	$
	25,000,000
	
12.32 	(a) $9,000,000 each year is for direct state aid 
12.33 	to the public employees police and fire 
13.1 	retirement plan authorized under Minnesota 
13.2 	Statutes, section 353.65, subdivision 3b.
13.3 	(b) State payments from the general fund to 
13.4 	the Public Employees Retirement Association 
13.5 	on behalf of the former MERF division 
13.6 	account are $16,000,000 on September 15, 
13.7 	2026, and $16,000,000 on September 15, 
13.8 	2027. These amounts are estimated to be 
13.9 	needed under Minnesota Statutes, section 
13.10 	353.505.

13.11
13.12	Sec. 34. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	29,831,000
	$
	29,831,000
	
13.13 	The amounts estimated to be needed are as 
13.14 	follows:
13.15 	Special Direct State Aid. $27,331,000 each 
13.16 	year is for special direct state aid authorized 
13.17 	under Minnesota Statutes, section 354.436.
13.18 	Special Direct State Matching Aid.
13.19 	$2,500,000 each year is for special direct state 
13.20 	matching aid authorized under Minnesota 
13.21 	Statutes, section 354.435.

13.22
13.23	Sec. 35. ST. PAUL TEACHERS RETIREMENT 
FUND
 	$
	14,827,000
	$
	14,827,000
	
13.24 	The amounts estimated to be needed for 
13.25 	special direct state aid to the first class city 
13.26 	teachers retirement fund association authorized 
13.27 	under Minnesota Statutes, section 354A.12, 
13.28 	subdivisions 3a and 3c.

13.29 	Sec. 36. TRANSFERS; SECRETARY OF STATE.
 13.30 		Subdivision 1.VOTER account. The secretary of state, in consultation with the 
13.31 	commissioner of management and budget, must transfer $3,000,000 in fiscal year 2026 and 
13.32 	$3,000,000 in fiscal year 2027 from the general fund to the voting operations, technology, 
13.33 	and election resources account established under Minnesota Statutes, section 5.305. For 
14.1 	fiscal years 2028 to 2031, the commissioner of management and budget must include a 
14.2 	transfer of $3,000,000 each year from the general fund to the voting operations, technology, 
14.3 	and election resources account, when preparing each forecast from the effective date of this 
14.4 	section through the February 2027 forecast, under Minnesota Statutes, section 16A.103.
14.5 		Subd. 2.VRA account. The secretary of state, in consultation with the commissioner 
14.6 	of management and budget, must transfer $25,000 in fiscal year 2026 and $25,000 in fiscal 
14.7 	year 2027 from the general fund to the Voting Rights Act cost sharing account established 
14.8 	under Minnesota Statutes, section 200.60, subdivision 1. For fiscal years 2028 to 2031, the 
14.9 	commissioner of management and budget must include a transfer of $25,000 each year from 
14.10 	the general fund to the Voting Rights Act cost sharing account, when preparing each forecast 
14.11 	from the effective date of this section through the February 2027 forecast, under Minnesota 
14.12 	Statutes, section 16A.103.

14.13 	Sec. 37. Laws 2023, chapter 62, article 1, section 11, subdivision 2, is amended to read:

14.14	Subd. 2.Government and Citizen Services
 		39,928,000
		19,943,000
	
14.15 	The base for this appropriation is $17,268,000 
14.16 	in fiscal year 2026 and $17,280,000 in fiscal 
14.17 	year 2027.
14.18 	Council on Developmental Disabilities.
14.19 	$222,000 each year is for the Council on 
14.20 	Developmental Disabilities.
14.21 	State Agency Accommodation 
14.22 	Reimbursement. $200,000 each year may be 
14.23 	transferred to the accommodation account 
14.24 	established in Minnesota Statutes, section 
14.25 	16B.4805.
14.26 	Disparity Study. $500,000 the first year and 
14.27 	$1,000,000 the second year are to conduct a 
14.28 	study on disparities in state procurement. This 
14.29 	is a onetime appropriation.
14.30 	Grants Administration Oversight.
14.31 	$2,411,000 the first year and $1,782,000 the 
14.32 	second year are for grants administration 
14.33 	oversight. The base for this appropriation in 
15.1 	fiscal year 2026 and each year thereafter is 
15.2 	$1,581,000.
15.3 	$735,000 the first year and $201,000 the 
15.4 	second year are for a study to develop a road 
15.5 	map on the need for an enterprise grants 
15.6 	management system and to implement the 
15.7 	study's recommendation. This is a onetime 
15.8 	appropriation.
15.9 	Risk Management Fund Property 
15.10 	Self-Insurance. $12,500,000 the first year is 
15.11 	for transfer to the risk management fund under 
15.12 	Minnesota Statutes, section 16B.85. This is a 
15.13 	onetime appropriation.
15.14 	Office of Enterprise Translations.
15.15 	$1,306,000 the first year and $1,159,000 the 
15.16 	second year are to establish the Office of 
15.17 	Enterprise Translations. $250,000 each year 
15.18 	may be transferred to the language access 
15.19 	service account established in Minnesota 
15.20 	Statutes, section 16B.373.
15.21 	Capitol Mall Design Framework 
15.22 	Implementation. $5,000,000 the first year is 
15.23 	to implement the updated Capitol Mall Design 
15.24 	Framework, prioritizing the framework plans 
15.25 	identified in article 2, section 124. This 
15.26 	appropriation is available until December 31, 
15.27 	2024 June 30, 2026.
15.28 	Parking Fund. $3,255,000 the first year and 
15.29 	$1,085,000 the second year are for a transfer 
15.30 	to the state parking account to maintain the 
15.31 	operations of the parking and transit program 
15.32 	on the Capitol complex. These are onetime 
15.33 	transfers.
16.1 	Procurement; Environmental Analysis and 
16.2 	Task Force. $522,000 the first year and 
16.3 	$367,000 the second year are to implement 
16.4 	the provisions of Minnesota Statutes, section 
16.5 	16B.312.
16.6 	Center for Rural Policy and Development. 
16.7 	$100,000 the first year is for a grant to the 
16.8 	Center for Rural Policy and Development.

16.9 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2024.

16.10 	Sec. 38. Laws 2023, chapter 62, article 1, section 13, is amended to read:

16.11
16.12	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	55,356,000
	$
	58,057,000
56,357,000
	
16.13 	The base for this appropriation is $47,831,000 
16.14 	in fiscal year 2026 and each fiscal year 
16.15 	thereafter.
16.16 	(a) $13,489,000 the first year and $14,490,000 
16.17 	the second year are to stabilize and secure the 
16.18 	state's enterprise resource planning systems. 
16.19 	This amount is available until June 30, 2027. 
16.20 	The base for this appropriation is $6,470,000 
16.21 	in fiscal year 2026 and each fiscal year 
16.22 	thereafter.
16.23 	(b) $1,000,000 each year is for administration 
16.24 	and staffing of the Children's Cabinet 
16.25 	established in Minnesota Statutes, section 
16.26 	4.045.
16.27 	(c) $317,000 each year is to increase the 
16.28 	agency's capacity to proactively raise 
16.29 	awareness about the capital budget process 
16.30 	and provide technical assistance around the 
16.31 	requirements associated with the capital 
16.32 	budget process and receiving general fund or 
16.33 	general obligation bond funding for capital 
17.1 	projects, including compliance requirements 
17.2 	that must be met at various stages of capital 
17.3 	project development, with particular focus on 
17.4 	nonprofits, American Indian communities, and 
17.5 	communities of color that have traditionally 
17.6 	not participated in the state capital budget 
17.7 	process. This appropriation may also be used 
17.8 	to increase the agency's capacity to coordinate 
17.9 	with other state agencies regarding the 
17.10 	administration of grant agreements, programs, 
17.11 	and technical assistance related to capital 
17.12 	projects governed by the provisions of 
17.13 	Minnesota Statutes, chapter 16A, and other 
17.14 	applicable laws and statutes.
17.15 	(d) $2,500,000 each in fiscal year is 2024 and 
17.16 	$800,000 in fiscal year 2025 are for 
17.17 	interagency collaboration to develop data 
17.18 	collection standards for race, ethnicity, gender 
17.19 	identity, and disability status and to develop 
17.20 	a roadmap and timeline for implementation 
17.21 	of the data standards across state government. 
17.22 	These funds may be transferred to other 
17.23 	agencies to support this work and may be used 
17.24 	to update computer systems to accommodate 
17.25 	revised data collection standards. This is a 
17.26 	onetime appropriation and is available until 
17.27 	June 30, 2027.
17.28 	(e) $102,000 the first year and $60,000 the 
17.29 	second year are for the report required under 
17.30 	Minnesota Statutes, section 43A.15, 
17.31 	subdivision 14a, and for training and content 
17.32 	development relating to ADA Title II, 
17.33 	affirmative action, equal employment 
17.34 	opportunity, digital accessibility, inclusion, 
17.35 	disability awareness, and cultural competence.

18.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.2 	ARTICLE 2
18.3 	STATE GOVERNMENT POLICY

18.4 	Section 1. [1.1466] STATE FOSSIL.
18.5 		Subdivision 1.Designation. Castoroides ohioensis, commonly known as the giant 
18.6 	beaver, or capa in Dakota and amik in Ojibwe, is designated as the official state fossil of 
18.7 	the state of Minnesota.
18.8 		Subd. 2.Photograph. A photograph of the giant beaver, approved by the commissioner 
18.9 	of natural resources, shall be preserved and may be displayed in the Office of the Secretary 
18.10 	of State.

18.11 	Sec. 2. Minnesota Statutes 2024, section 3.971, subdivision 2, is amended to read:
18.12 		Subd. 2.Staff; compensation. (a) The legislative auditor shall establish a Financial 
18.13 	Audits Division and, a Program Evaluation Division, and a Special Reviews Division to 
18.14 	fulfill the duties prescribed in this section.
18.15 	(b) Each division may be supervised by a deputy auditor, appointed by the legislative 
18.16 	auditor, with the approval of the commission, for a term coterminous with the legislative 
18.17 	auditor's term. The deputy auditors may be removed before the expiration of their terms 
18.18 	only for cause. The legislative auditor and deputy auditors may each appoint an administrative 
18.19 	support specialist to serve at pleasure. The salaries and benefits of the legislative auditor, 
18.20 	deputy auditors, and administrative support specialists shall be determined by the 
18.21 	compensation plan approved by the Legislative Coordinating Commission. The deputy 
18.22 	auditors may perform and exercise the powers, duties and responsibilities imposed by law 
18.23 	on the legislative auditor when authorized by the legislative auditor.
18.24 	(c) The legislative auditor, deputy auditors, and administrative support specialists shall 
18.25 	serve in the unclassified civil service, but all other employees of the legislative auditor shall 
18.26 	serve in the classified civil service. Compensation for employees of the legislative auditor 
18.27 	in the classified service shall be governed by a plan prepared by the legislative auditor and 
18.28 	approved by the Legislative Coordinating Commission and the legislature under section 
18.29 	3.855, subdivision 3.
18.30 	(d) While in office, a person appointed deputy for the Financial Audit Division must 
18.31 	hold an active license as a certified public accountant.
19.1 	(e) Notwithstanding section 43A.32, subdivisions 2 and 3, or any other law to the 
19.2 	contrary, an employee of the legislative auditor is prohibited from being a candidate for a 
19.3 	partisan elected public office.

19.4 	Sec. 3. Minnesota Statutes 2024, section 3.971, subdivision 8a, is amended to read:
19.5 		Subd. 8a.Special reviews. The legislative auditor may conduct a special review to: (1) 
19.6 	fulfill a legal requirement; (2) investigate allegations that an individual or organization 
19.7 	subject to audit by the legislative auditor may not have complied with legal requirements, 
19.8 	including but not limited to legal requirements related to the use of public money, other 
19.9 	public resources, or government data classified as not public; (3) respond to a legislative 
19.10 	request for a review of an organization or program subject to audit by the legislative auditor; 
19.11 	or (4) investigate allegations that an individual may not have complied with section 43A.38
19.12 	or 43A.39; or (5) follow up on a prior special review to assess what changes have occurred.

19.13 	Sec. 4. Minnesota Statutes 2024, section 3.971, subdivision 9, is amended to read:
19.14 		Subd. 9.Obligation to notify the legislative auditor. The chief executive, financial, 
19.15 	or information officers (a) An obligated officer of an organization subject to audit under 
19.16 	this section must promptly notify the legislative auditor when the officer obtains information 
19.17 	indicating that public money or other public resources may have been used for an unlawful 
19.18 	purpose, or when the officer obtains information indicating that government data classified 
19.19 	by chapter 13 as not public may have been accessed by or provided to a person without 
19.20 	lawful authorization. As necessary, the legislative auditor shall coordinate an investigation 
19.21 	of the allegation with appropriate law enforcement officials.
19.22 	(b) For purposes of this subdivision, "obligated officer" means the organization's:
19.23 	(1) chief executive officer;
19.24 	(2) deputy and assistant chief executive officers;
19.25 	(3) chief administrative, chief financial, chief information, and chief investigative officers;
19.26 	(4) heads of divisions, bureaus, departments, institutes, or other organizational units; 
19.27 	and
19.28 	(5) board chair, where applicable.

20.1 	Sec. 5. Minnesota Statutes 2024, section 11A.24, is amended by adding a subdivision to 
20.2 	read:
20.3 		Subd. 8.Contracts. Section 16C.05, subdivision 8, paragraph (a), clauses (2) and (5), 
20.4 	do not apply to contracts entered into by the State Board of Investment related to an 
20.5 	investment under this section.

20.6 	Sec. 6. Minnesota Statutes 2024, section 14.48, subdivision 1, is amended to read:
20.7 		Subdivision 1.Creation. A state Office Court of Administrative Hearings is created.

20.8 	Sec. 7. Minnesota Statutes 2024, section 14.48, subdivision 2, is amended to read:
20.9 		Subd. 2.Chief administrative law judge. (a) The office court shall be under the direction 
20.10 	of a chief administrative law judge who shall be learned in the law and appointed by the 
20.11 	governor, with the advice and consent of the senate, for a term ending on June 30 of the 
20.12 	sixth calendar year after appointment. Senate confirmation of the chief administrative law 
20.13 	judge shall be as provided by section 15.066.
20.14 	(b) The chief administrative law judge may hear cases and, in accordance with chapter 
20.15 	43A, shall appoint a deputy chief judge and additional administrative law judges and 
20.16 	compensation judges to serve in the office court as necessary to fulfill the duties of the 
20.17 	Office Court of Administrative Hearings.
20.18 	(c) The chief administrative law judge may delegate to a subordinate employee the 
20.19 	exercise of a specified statutory power or duty as deemed advisable, subject to the control 
20.20 	of the chief administrative law judge. Every delegation must be by written order filed with 
20.21 	the secretary of state. The chief administrative law judge is subject to the provisions of the 
20.22 	Minnesota Constitution, article VI, section 6, the jurisdiction of the Board on Judicial 
20.23 	Standards, and the provisions of the Code of Judicial Conduct.
20.24 	(d) If a vacancy in the position of chief administrative law judge occurs, an acting or 
20.25 	temporary chief administrative law judge must be named as follows:
20.26 	(1) at the end of the term of a chief administrative law judge, the incumbent chief 
20.27 	administrative law judge may, at the discretion of the appointing authority, serve as acting 
20.28 	chief administrative law judge until a successor is appointed; and
20.29 	(2) if at the end of a term of a chief administrative law judge the incumbent chief 
20.30 	administrative law judge is not designated as acting chief administrative law judge, or if a 
20.31 	vacancy occurs in the position of chief administrative law judge, the deputy chief judge 
21.1 	shall immediately become temporary chief administrative law judge without further official 
21.2 	action.
21.3 	(e) The appointing authority of the chief administrative law judge may appoint a person 
21.4 	other than the deputy chief judge to serve as temporary chief administrative law judge and 
21.5 	may replace any other acting or temporary chief administrative law judge designated pursuant 
21.6 	to paragraph (d), clause (1) or (2).

21.7 	Sec. 8. Minnesota Statutes 2024, section 14.62, subdivision 1, is amended to read:
21.8 		Subdivision 1.Writing required. Every decision and order rendered by an agency in 
21.9 	a contested case shall be in writing, shall be based on the record and shall include the agency's 
21.10 	findings of fact and conclusions on all material issues. A decision or order that rejects or 
21.11 	modifies a finding of fact, conclusion, or recommendation contained in the report of the 
21.12 	administrative law judge required under sections 14.48 to 14.56, or requests remand under 
21.13 	subdivision 2b, must include the reasons for each rejection or, modification, or request for 
21.14 	remand. A copy of the decision and order shall be served upon each party or the party's 
21.15 	representative and the administrative law judge by first class mail.

21.16 	Sec. 9. Minnesota Statutes 2024, section 14.62, subdivision 2a, is amended to read:
21.17 		Subd. 2a.Administrative law judge decision final; exception. Unless otherwise 
21.18 	provided by law, the report or order of the administrative law judge constitutes the final 
21.19 	decision in the case unless the agency modifies or rejects it under, rejects, or requests remand 
21.20 	pursuant to subdivision 1 within 90 days after the record of the proceeding closes under 
21.21 	section 14.61. When the agency fails to act within 90 days on a licensing case, the agency 
21.22 	must return the record of the proceeding to the administrative law judge for consideration 
21.23 	of disciplinary action. In all contested cases where the report or order of the administrative 
21.24 	law judge constitutes the final decision in the case, the administrative law judge shall issue 
21.25 	findings of fact, conclusions, and an order within 90 days after the hearing record closes 
21.26 	under section 14.61. Upon a showing of good cause by a party or the agency, the chief 
21.27 	administrative law judge may order a reasonable extension of either of the two 90-day 
21.28 	deadlines specified in this subdivision. The 90-day deadline will be tolled while the chief 
21.29 	administrative law judge considers a request for reasonable extension so long as the request 
21.30 	was filed and served within the applicable 90-day period.

22.1 	Sec. 10. Minnesota Statutes 2024, section 14.62, is amended by adding a subdivision to 
22.2 	read:
22.3 		Subd. 2b.Agency request for remand. (a) An agency may request remand of a finding 
22.4 	of fact, conclusion of law, or recommendation within 45 days following the close of the 
22.5 	hearing record under section 14.61.  Upon a showing of good cause by the agency, the chief 
22.6 	administrative law judge may consider a request for remand received after the deadline 
22.7 	specified in this provision.
22.8 	(b) The requesting agency must state with specificity the reasons the agency is requesting 
22.9 	remand.  If the agency requests remand for additional fact finding, the agency must state 
22.10 	with specificity that it is requesting remand for further fact finding, identify the issues for 
22.11 	which further fact finding is needed, and explain why further fact finding is necessary to 
22.12 	facilitate a fair and just final decision.
22.13 	(c) The chief judge, or their designee, must accept a request for remand within ten 
22.14 	business days if:
22.15 	(1) the agency rejects a recommendation to grant summary disposition;
22.16 	(2) a party who had procedurally defaulted during the administrative proceedings seeks 
22.17 	to participate; and
22.18 	(3) following remand from the Minnesota Court of Appeals or Minnesota Supreme 
22.19 	Court, or identification of a mathematical or clerical error, the agency identifies a need for 
22.20 	additional proceedings before the Court of Administrative Hearings.
22.21 	(d) The chief judge, or their designee, may accept a request for remand within ten business 
22.22 	days for other reasons as justice requires and consistent with section 14.001.
22.23 	(e) When a request for remand is accepted by the chief judge or their designee, the chief 
22.24 	judge or their designee must assign an administrative law judge to conduct further 
22.25 	proceedings under this chapter on the issues accepted for remand.

22.26 	Sec. 11. [15.0573] REPORTING ALLEGED MISUSE OF PUBLIC RESOURCES 
22.27 	OR DATA.
22.28 	The commissioner or chief executive officer of each state department, board, commission, 
22.29 	office, or other agency must ensure that employee and nonemployee concerns about the 
22.30 	misuse of public money, other public resources, or government data are promptly directed 
22.31 	to one or more of the obligated officers identified in section 3.971, subdivision 9, or the 
22.32 	Office of the Legislative Auditor. The commissioner of management and budget must 
23.1 	develop a policy to operationalize and standardize the process under this section across state 
23.2 	agencies.

23.3 	Sec. 12. [15.442] LOCAL NEWS ORGANIZATION ADVERTISING BY STATE 
23.4 	AGENCIES.
23.5 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
23.6 	the meanings given.
23.7 	(b) "Advertising" means paid communication transmitted via newspaper, magazine, 
23.8 	radio, television, social media, Internet, or other electronic means to make any person aware 
23.9 	of information relevant to an agency or a program or public awareness campaign operated 
23.10 	by an agency.
23.11 	(c) "Agency" means any board, commission, authority, department, entity, or organization 
23.12 	of the executive branch of state government. Agency does not include the Minnesota State 
23.13 	Colleges and Universities or the Minnesota Zoo.
23.14 	(d) "Local news organization" means a print, digital, or hybrid publication, or a broadcast 
23.15 	television or radio station, that:
23.16 	(1) primarily serves the needs of the state of Minnesota or a regional, local, or ethnic 
23.17 	community within Minnesota;
23.18 	(2) primarily has content derived from primary sources relating to news, information, 
23.19 	and current events;
23.20 	(3) employs at least one journalist who resides in Minnesota and who regularly gathers, 
23.21 	collects, photographs, records, writes, or reports news or information that concerns local 
23.22 	events or other matters of local public interest;
23.23 	(4) has a known Minnesota-based office of publication or broadcast station where business 
23.24 	is transacted during usual business hours with a local telephone number and must list contact 
23.25 	information in each updated publication or on their website; and
23.26 	(5) has not received more than 50 percent of its gross receipts for the previous year from 
23.27 	political action committees or other entities described in section 527 of the Internal Revenue 
23.28 	Code, or from an organization that maintains section 501(c)(4), 501(c)(5), or 501(c)(6) 
23.29 	status under the Internal Revenue Code.
23.30 		Subd. 2.State agency advertising. Agencies are encouraged to direct advertising 
23.31 	spending toward local news organizations when practicable and in support of the agency's 
23.32 	advertising goals. Advertising primarily targeted at out-of-state residents is not subject to 
24.1 	this section. Nothing in this section prevents a state agency from contracting with outside 
24.2 	vendors to conduct advertising work.
24.3 		Subd. 3.Transparency. By February 1, 2026, and each year thereafter, all agencies 
24.4 	must publish the following information on their website for the previous fiscal year:
24.5 	(1) the total advertising spending by the agency;
24.6 	(2) the total percentage of advertising spending in local news organizations; and
24.7 	(3) the total percentage of advertising spending in local newspapers.

24.8 	EFFECTIVE DATE. This section is effective August 1, 2025.

24.9 	Sec. 13. Minnesota Statutes 2024, section 16A.152, subdivision 8, is amended to read:
24.10 		Subd. 8.Report on budget reserve percentage. (a) The commissioner of management 
24.11 	and budget shall develop and annually review a methodology for evaluating the adequacy 
24.12 	of the budget reserve based on the volatility of Minnesota's general fund tax structure. The 
24.13 	review must take into consideration relevant statistical and economic literature. After 
24.14 	completing the review, the commissioner may revise the methodology if necessary. The 
24.15 	commissioner must use the methodology to annually estimate the percentage of the current 
24.16 	biennium's general fund nondedicated revenues recommended as a budget reserve.
24.17 	(b) By September October 30 of each year, the commissioner shall report the percentage 
24.18 	of the current biennium's general fund nondedicated revenue that is recommended as a 
24.19 	budget reserve to the chairs and ranking minority members of the senate Committee on 
24.20 	Finance, the house of representatives Committee on Ways and Means, and the senate and 
24.21 	house of representatives Committees on Taxes. The report must also specify:
24.22 	(1) whether the commissioner revised the recommendation as a result of significant 
24.23 	changes in the mix of general fund taxes or the base of one or more general fund taxes;
24.24 	(2) whether the commissioner revised the recommendation as a result of a revision to 
24.25 	the methodology; and
24.26 	(3) any additional appropriate information.

24.27 	Sec. 14. Minnesota Statutes 2024, section 16B.055, subdivision 1, is amended to read:
24.28 		Subdivision 1.Federal Assistive Technology Act. (a) The Department of Administration 
24.29 	is designated as the lead agency to carry out all the responsibilities under the 21st Century 
24.30 	Assistive Technology Act of 1998, as provided by Public Law 108-364, as amended 117-263. 
24.31 	The Minnesota Assistive Technology Advisory Council is established to fulfill the 
25.1 	responsibilities required by the 21st Century Assistive Technology Act, as provided by 
25.2 	Public Law 108-364, as amended 117-263. Because the existence of this council is required 
25.3 	by federal law, this council does not expire.
25.4 	(b) Except as provided in paragraph (c), the governor shall appoint the membership of 
25.5 	the council as required by the 21st Century Assistive Technology Act of 1998, as provided 
25.6 	by Public Law 108-364, as amended 117-263. After the governor has completed the 
25.7 	appointments required by this subdivision, the commissioner of administration, or the 
25.8 	commissioner's designee, shall convene the first meeting of the council following the 
25.9 	appointments. Members shall serve two-year terms commencing July 1 of each odd-numbered 
25.10 	year, and receive the compensation specified by the 21st Century Assistive Technology Act 
25.11 	of 1998, as provided by Public Law 108-364, as amended 117-263. The members of the 
25.12 	council shall select their chair at the first meeting following their appointment.
25.13 	(c) After consulting with the appropriate commissioner, the commissioner of 
25.14 	administration shall appoint a representative from:
25.15 	(1) State Services for the Blind who has assistive technology expertise;
25.16 	(2) vocational rehabilitation services who has assistive technology expertise;
25.17 	(3) the Workforce Development Board; and
25.18 	(4) the Department of Education who has assistive technology expertise.; and
25.19 	(5) the Board on Aging.

25.20 	Sec. 15. Minnesota Statutes 2024, section 16B.335, subdivision 2, is amended to read:
25.21 		Subd. 2.Other projects. All other capital projects for which a specific appropriation is 
25.22 	made, including projects that are exempt under subdivision 1, paragraph (b), must not 
25.23 	proceed until the recipient undertaking the project has notified the chairs and ranking minority 
25.24 	members of the senate Capital Investment and Finance Committees and the house of 
25.25 	representatives Capital Investment and Ways and Means Committees that the work is ready 
25.26 	to begin. Notice is not required for:
25.27 	(1) capital projects needed to comply with the Americans with Disabilities Act;
25.28 	(2) asset preservation projects to which section 16B.307 applies;
25.29 	(3) projects funded by an agency's operating budget; or
25.30 	(4) projects funded by a capital asset preservation and replacement account under section 
25.31 	16A.632, a higher education asset preservation and replacement account under section 
26.1 	135A.046, or a natural resources asset preservation and replacement account under section 
26.2 	84.946.

26.3 	Sec. 16. Minnesota Statutes 2024, section 16B.48, subdivision 4, is amended to read:
26.4 		Subd. 4.Reimbursements. (a) Except as specifically provided otherwise by law, each 
26.5 	agency shall reimburse the general services revolving funds for the cost of all services, 
26.6 	supplies, materials, labor, and depreciation of equipment, including reasonable overhead 
26.7 	costs, which the commissioner is authorized and directed to furnish an agency. The cost of 
26.8 	all publications or other materials produced by the commissioner and financed from the 
26.9 	general services revolving fund must include reasonable overhead costs.
26.10 	(b) The commissioner of administration shall report the rates to be charged for the general 
26.11 	services revolving funds no later than July 1 September 15 each year to the chair of the 
26.12 	committee or division in the senate and house of representatives with primary jurisdiction 
26.13 	over the budget of the Department of Administration.
26.14 	(c) The commissioner of management and budget shall make appropriate transfers to 
26.15 	the revolving funds described in this section when requested by the commissioner of 
26.16 	administration. The commissioner of administration may make allotments, encumbrances, 
26.17 	and, with the approval of the commissioner of management and budget, disbursements in 
26.18 	anticipation of such transfers. In addition, the commissioner of administration, with the 
26.19 	approval of the commissioner of management and budget, may require an agency to make 
26.20 	advance payments to the revolving funds in this section sufficient to cover the agency's 
26.21 	estimated obligation for a period of at least 60 days.
26.22 	(d) All reimbursements and other money received by the commissioner of administration 
26.23 	under this section must be deposited in the appropriate revolving fund. Any earnings 
26.24 	remaining in the fund established to account for the documents service prescribed by section 
26.25 	16B.51 at the end of each fiscal year not otherwise needed for present or future operations, 
26.26 	as determined by the commissioners of administration and management and budget, must 
26.27 	be transferred to the general fund.

26.28 	Sec. 17. Minnesota Statutes 2024, section 16B.54, subdivision 2, is amended to read:
26.29 		Subd. 2.Vehicles. (a) The commissioner may direct an agency to make a transfer of a 
26.30 	passenger motor vehicle or truck currently assigned to it. The transfer must be made to the 
26.31 	commissioner for use in the enterprise fleet. The commissioner shall reimburse an agency 
26.32 	whose motor vehicles have been paid for with funds dedicated by the constitution for a 
26.33 	special purpose and which are assigned to the enterprise fleet. The amount of reimbursement 
27.1 	for a motor vehicle is its average wholesale price as determined from the midwest edition 
27.2 	of the National Automobile Dealers Association official used car guide.
27.3 	(b) To the extent that funds are available for the purpose, the commissioner may purchase 
27.4 	or otherwise acquire additional passenger motor vehicles and trucks necessary for the 
27.5 	enterprise fleet. The title to all motor vehicles assigned to or purchased or acquired for the 
27.6 	enterprise fleet is in the name of the Department of Administration.
27.7 	(c) On the request of an agency, the commissioner may transfer to the enterprise fleet 
27.8 	any passenger motor vehicle or truck for the purpose of disposing of it. The department or 
27.9 	agency transferring the vehicle or truck must be paid for it from the motor pool revolving 
27.10 	account established by this section in an amount equal to two-thirds of the average wholesale 
27.11 	price of the vehicle or truck as determined from the midwest edition of the National 
27.12 	Automobile Dealers Association official used car guide.
27.13 	(d) The commissioner shall provide for the uniform marking of all motor vehicles. Motor 
27.14 	vehicle colors must be selected from the regular color chart provided by the manufacturer 
27.15 	each year. The commissioner may further provide for the use of motor vehicles without 
27.16 	marking by:
27.17 	(1) the governor;
27.18 	(2) the lieutenant governor;
27.19 	(3) the Division of Criminal Apprehension, the Division of Alcohol and Gambling 
27.20 	Enforcement, and arson investigators of the Division of Fire Marshal in the Department of 
27.21 	Public Safety;
27.22 	(4) the Financial Institutions Division and investigative staff of the Department of 
27.23 	Commerce;
27.24 	(5) the Division of Disease Prevention and Control of the Department of Health;
27.25 	(6) the State Lottery;
27.26 	(7) criminal investigators of the Department of Revenue;
27.27 	(8) state-owned community service facilities in Direct Care and Treatment;
27.28 	(9) the Office of the Attorney General;
27.29 	(10) the investigative staff of the Gambling Control Board; and
27.30 	(11) the Department of Corrections inmate community work crew program under section 
27.31 	352.91, subdivision 3g.; and
28.1 	(12) the Office of Ombudsman for Long-Term Care.

28.2 	Sec. 18. [16B.851] STATE BUILDING RENEWABLE ENERGY; STORAGE; 
28.3 	ELECTRIC VEHICLE ACCOUNT.
28.4 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
28.5 	the meanings given.
28.6 	(b) "Energy storage" means the predesign, design, acquisition, construction, or installation 
28.7 	of technology which stores and delivers electric or thermal energy.
28.8 	(c) "EVSE" means electric vehicle service equipment, including charging equipment 
28.9 	and associated infrastructure and site upgrades.
28.10 	(d) "Renewable energy" has the meaning given in section 216B.2422, subdivision 1, 
28.11 	paragraph (c), and the same sources in thermal energy.
28.12 	(e) "Renewable energy improvement" means the predesign, design, acquisition, 
28.13 	construction, or installation of a renewable energy production system or energy storage 
28.14 	equipment or system, and associated infrastructure and facilities, that is designed to result 
28.15 	in a demand-side net reduction in energy use by the state building's electrical, heating, 
28.16 	ventilating, air-conditioning, or hot water systems.
28.17 	(f) "State agency" has the definition given in section 13.02, subdivision 17, or the 
28.18 	designated definition given in section 15.01 and includes the Office of Higher Education, 
28.19 	Housing Finance Agency, Pollution Control Agency, and Bureau of Mediation Services. 
28.20 	State agency includes agencies, boards, commissions, committees, councils, and authorities 
28.21 	as defined in section 15.012.
28.22 	(g) "State building" means a building or facility owned by the state of Minnesota.
28.23 		Subd. 2.Account established. A state building renewable energy, storage, and electric 
28.24 	vehicle account is established in the special revenue fund to provide funds to state agencies 
28.25 	to:
28.26 	(1) design, construct, and equip renewable energy improvement and renewable energy 
28.27 	storage projects at state buildings;
28.28 	(2) purchase state fleet electric vehicles in accordance with section 16C.135;
28.29 	(3) purchase and install EVSE and related infrastructure; and
28.30 	(4) carry out management of the program by the commissioner.
29.1 		Subd. 3.Account management. The commissioner shall manage and administer the 
29.2 	state building renewable energy, storage, and electric vehicle account.
29.3 		Subd. 4.Accepting funds. (a) The commissioner shall be responsible for making 
29.4 	application to the federal government on behalf of the state of Minnesota for state projects 
29.5 	eligible for elective payments under sections 6417 and 6418 of the Internal Revenue Code, 
29.6 	as added by Public Law 117-169, 136 Statute 1818, the Inflation Reduction Act of 2022.
29.7 	(b) The commissioner may apply for, receive, and expend money made available from 
29.8 	federal, state, or other sources for the purposes of carrying out the duties in this section.
29.9 	(c) Notwithstanding section 16A.72, all funds received under this subdivision are 
29.10 	deposited into the state building renewable energy, storage, and electric vehicle account 
29.11 	and appropriated to the commissioner for the purposes of subdivision 2 and as permitted 
29.12 	under this section.
29.13 	(d) Money in the state building renewable energy, storage, and electric vehicle account 
29.14 	does not cancel and is available until expended.
29.15 		Subd. 5.Applications. A state agency applying for state building renewable energy, 
29.16 	storage, EVSE, and electric fleet vehicle funds must submit an application to the 
29.17 	commissioner on a form, in the manner, and at the time prescribed by the commissioner.
29.18 		Subd. 6.Treatment of certain payments received from federal government. (a) 
29.19 	Federal payments received for eligible renewable energy improvement and storage projects, 
29.20 	and EVSE projects, made with appropriations from general obligation bonds, may be 
29.21 	transferred to the state bond fund, if consistent with federal treasury regulations.
29.22 	(b) Federal payments received for eligible electric fleet vehicle purchases by the 
29.23 	Department of Administration's fleet division must be transferred to the motor pool revolving 
29.24 	account established in section 16B.54, subdivision 8.
29.25 	(c) Federal payments received for eligible electric fleet vehicle purchases made directly 
29.26 	by a state agency shall be transferred to the fund from which the purchase was made.
29.27 	(d) When obligated to fulfill financing agreements, federal payments received for eligible 
29.28 	renewable energy improvements shall be transferred to the appropriate agency.

29.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

29.30 	Sec. 19. Minnesota Statutes 2024, section 16B.97, subdivision 1, is amended to read:
29.31 		Subdivision 1.Grant agreement Definitions. (a) For purposes of this section, the 
29.32 	following terms have the meanings given:
30.1 	A grant agreement is (1) "grant agreement" means a written instrument or electronic 
30.2 	document defining a legal relationship between a granting agency and a grantee when the 
30.3 	principal purpose of the relationship is to transfer cash or something of value to the recipient 
30.4 	to support a public purpose authorized by law instead of acquiring by professional or technical 
30.5 	contract, purchase, lease, or barter property or services for the direct benefit or use of the 
30.6 	granting agency.; and
30.7 	(2) "grantee" means a potential or current recipient of a state-issued grant.
30.8 	(b) This section does not apply to general obligation grants as defined by section 16A.695
30.9 	and, capital project grants to political subdivisions as defined by section 16A.86, or capital 
30.10 	project grants otherwise subject to section 16A.642, all of which are subject to the policies 
30.11 	and procedures adopted by the commissioner of management and budget and other 
30.12 	requirements specified in applicable law.

30.13 	Sec. 20. Minnesota Statutes 2024, section 16B.98, subdivision 1, is amended to read:
30.14 		Subdivision 1.Limitation. (a) As a condition of receiving a grant from an appropriation 
30.15 	of state funds, the recipient of the grant must agree to minimize that administrative costs
30.16 	must be necessary and reasonable. The granting agency is responsible for negotiating 
30.17 	appropriate limits to these costs so that the state derives the optimum benefit for grant 
30.18 	funding.
30.19 	(b) This section does not apply to general obligation grants as defined by section 16A.695
30.20 	and also capital project grants to political subdivisions as defined by section 16A.86, or 
30.21 	capital project grants otherwise subject to section 16A.642.

30.22 	Sec. 21. Minnesota Statutes 2024, section 16B.98, subdivision 4, is amended to read:
30.23 		Subd. 4.Reporting of violations. A state employee who discovers evidence of violation 
30.24 	of laws or rules governing grants is encouraged required to report the violation or suspected 
30.25 	violation to the employee's supervisor, the commissioner or the commissioner's designee, 
30.26 	or the legislative auditor. The legislative auditor shall report to the Legislative Audit 
30.27 	Commission if there are multiple complaints about the same agency. The auditor's report 
30.28 	to the Legislative Audit Commission under this section must disclose only the number and 
30.29 	type of violations alleged. An employee making a good faith report under this section has 
30.30 	the protections provided for under section 181.932, prohibiting the employer from 
30.31 	discriminating against the employee.

31.1 	Sec. 22. Minnesota Statutes 2024, section 16B.981, subdivision 4, is amended to read:
31.2 		Subd. 4.Agency authority to not award grant. (a) If, while performing the required 
31.3 	steps in subdivision 2 and pursuant to sections 16B.97, 16B.98, and 16B.991, the agency 
31.4 	requires additional information to determine whether there is a substantial risk that the 
31.5 	potential grantee cannot or would not perform the required duties of the grant agreement, 
31.6 	the agency must give the grantee 30 business 15 calendar days within which the grantee 
31.7 	can respond to the agency for the purpose of satisfying the agency's concerns or work with 
31.8 	the agency to develop a plan to satisfy the concerns.
31.9 	(b) If, after performing the required steps in subdivision 2 and pursuant to sections 
31.10 	16B.97, 16B.98, and 16B.991, and after reviewing any additional requested information 
31.11 	from the grantee, the agency still has concerns that there is a substantial risk that a potential 
31.12 	grantee cannot or would not perform the required duties under the grant agreement, the 
31.13 	agency must either create a plan to satisfy remaining concerns with the grantee or must not 
31.14 	award the grant.
31.15 	(c) If, pursuant to paragraphs (a) and (b), the agency does not award a competitive, 
31.16 	single-source, or sole-source grant, the agency must provide notification to the grantee and 
31.17 	the commissioner of administration of the determination. The notification to the grantee 
31.18 	must include the agency's reason for postponing or forgoing the grant, including information 
31.19 	sufficient to explain and support the agency's decision, and notify the applicant of the process 
31.20 	for contesting the agency's decision with the agency and the applicant's options under 
31.21 	paragraph (d). If the applicant contests the agency's decision no later than 15 business days 
31.22 	after receiving the notice, the agency must consider any additional written information 
31.23 	submitted by the grantee. The agency has 15 business days to consider this information, 
31.24 	during which the agency may reverse or modify the agency's initial decision to postpone 
31.25 	or forgo the grant.
31.26 	(d) The final decision by an agency under paragraph (c) may be challenged as a contested 
31.27 	case under chapter 14. The contested case proceeding must be initiated within 30 business
31.28 	calendar days of the date of written notification of a final decision by the agency.
31.29 	(e) If, pursuant to paragraphs (a) and (b), the agency does not award a legislatively named 
31.30 	grant, the agency must delay award of the grant until adjournment of the next regular or 
31.31 	special legislative session for action from the legislature. The agency must provide 
31.32 	notification to the potential grantee, the commissioner of administration, and the chairs and 
31.33 	ranking minority members of the Ways and Means Committee in the house of representatives 
31.34 	and the chairs and ranking minority members of the Finance Committee in the senate. The 
32.1 	notification to the grantee must include the agency's reason for postponing or forgoing the 
32.2 	grant, including information sufficient to explain and support the agency's decision and 
32.3 	notify the applicant of the process for contesting the agency's decision under paragraph (d). 
32.4 	If the applicant contests the agency's decision no later than 15 business days after receiving 
32.5 	the notice, the agency must consider any additional written information submitted by the 
32.6 	grantee. The agency has 15 business days to consider this information, during which the 
32.7 	agency may reverse or modify the agency's initial decision to postpone or forgo the grant.
32.8 	The notification to the commissioner of administration and legislators must identify the 
32.9 	legislatively named potential grantee and the agency's reason for postponing or forgoing 
32.10 	the grant. After hearing the concerns of the agency, the legislature may reaffirm the award 
32.11 	of the grant or reappropriate the funds to a different legislatively named grantee. Based on 
32.12 	the action of the legislature, the agency must award the grant to the legislatively named 
32.13 	grantee. If the legislature does not provide direction to the agency on the disposition of the 
32.14 	grant, the funds revert to the original appropriation source.

32.15 	Sec. 23. Minnesota Statutes 2024, section 16B.991, subdivision 2, is amended to read:
32.16 		Subd. 2.Authority. A grant agreement must by its terms permit the commissioner to 
32.17 	unilaterally terminate the grant agreement prior to completion if the commissioner determines 
32.18 	that further performance under the grant agreement would not serve agency purposes or 
32.19 	performance under the grant agreement is not in the best interests of the state.

32.20 	Sec. 24. Minnesota Statutes 2024, section 16C.05, is amended by adding a subdivision to 
32.21 	read:
32.22 		Subd. 8.Unenforceable terms. (a) A contract entered into by the state shall not contain 
32.23 	a term that:
32.24 	(1) requires the state to defend, indemnify, or hold harmless another person or entity, 
32.25 	unless specifically authorized by statute;
32.26 	(2) binds a party by terms and conditions that may be unilaterally changed by the other 
32.27 	party;
32.28 	(3) requires mandatory arbitration;
32.29 	(4) attempts to extend arbitration obligations to disputes unrelated to the original contract;
32.30 	(5) construes the contract in accordance with the laws of a state other than Minnesota;
32.31 	(6) obligates state funds in subsequent fiscal years in the form of automatic renewal as 
32.32 	defined in section 325G.56; or
33.1 	(7) is inconsistent with chapter 13, the Minnesota Government Data Practices Act.
33.2 	(b) If a contract is entered into that contains a term prohibited in paragraph (a), that term 
33.3 	shall be void and the contract is enforceable as if it did not contain that term.
33.4 	(c) The commissioner shall post a copy of this section on its website.

33.5 	Sec. 25. Minnesota Statutes 2024, section 16C.137, subdivision 2, is amended to read:
33.6 		Subd. 2.Report Evaluation. (a) The commissioner of administration, in collaboration 
33.7 	with the commissioners of the Pollution Control Agency, the Departments of Agriculture, 
33.8 	Commerce, Natural Resources, and Transportation, and other state departments, must 
33.9 	evaluate the goals and directives established in this section and report include their findings 
33.10 	to the governor and the appropriate committees of the legislature by February 1 of each 
33.11 	odd-numbered year in the public dashboard under section 16B.372. In the report public 
33.12 	dashboard, the commissioner must make recommendations for new or adjusted goals, 
33.13 	directives, or legislative initiatives, in light of the progress the state has made implementing 
33.14 	this section and the availability of new or improved technologies.
33.15 	(b) The Department of Administration shall implement a fleet reporting and information 
33.16 	management system. Each department will use this management system to demonstrate its 
33.17 	progress in complying with this section.

33.18 	Sec. 26. Minnesota Statutes 2024, section 16C.16, subdivision 2, is amended to read:
33.19 		Subd. 2.Small business. The commissioner shall adopt the size standards for "small 
33.20 	business" found in Code of Federal Regulations, title 49, section 26.65, a small business
33.21 	for purposes of sections 16C.16 to 16C.21, 137.31, 137.35, 161.321, and 473.142, provided 
33.22 	that the business has its principal place of business in Minnesota. The commissioner may 
33.23 	use the definition for "small business" in the Code of Federal Regulations, title 49, section 
33.24 	26.65, or may adopt another standard.

33.25 	Sec. 27. Minnesota Statutes 2024, section 16C.16, subdivision 6, is amended to read:
33.26 		Subd. 6.Purchasing methods. (a) The commissioner may award up to a 12 percent 
33.27 	preference for specified goods or services to small targeted group businesses.
33.28 	(b) The commissioner may award a contract for goods, services, or construction directly 
33.29 	to a small business or small targeted group business without going through a competitive 
33.30 	solicitation process up to a total contract award value, including extension options, of 
33.31 	$100,000.
34.1 	(c) The commissioner may designate a purchase of goods or services for award only to 
34.2 	small businesses or small targeted group businesses if the commissioner determines that at 
34.3 	least three small businesses or small targeted group businesses are likely to respond to a 
34.4 	solicitation.
34.5 	(d) The commissioner, as a condition of awarding a construction contract or approving 
34.6 	a contract for professional or technical services, may set goals that require the prime 
34.7 	contractor to subcontract a portion of the contract to small businesses or small targeted 
34.8 	group businesses. The commissioner must establish a procedure for granting waivers from 
34.9 	the subcontracting requirement when qualified small businesses or small targeted group 
34.10 	businesses are not reasonably available. The commissioner may establish financial incentives 
34.11 	for prime contractors who exceed the goals for use of small business or small targeted group 
34.12 	business subcontractors and financial penalties for prime contractors who fail to meet goals 
34.13 	under this paragraph. The subcontracting requirements of this paragraph do not apply to 
34.14 	prime contractors who are small businesses or small targeted group businesses.

34.15 	Sec. 28. Minnesota Statutes 2024, section 16C.16, subdivision 6a, is amended to read:
34.16 		Subd. 6a.Veteran-owned small businesses. (a) Except when mandated by the federal 
34.17 	government as a condition of receiving federal funds, the commissioner shall award up to 
34.18 	a 12 percent preference, but no less than the percentage awarded to any other group under 
34.19 	this section, on state procurement to certified small businesses that are majority-owned and 
34.20 	operated by veterans.
34.21 	(b) The commissioner may award a contract for goods, services, or construction directly 
34.22 	to a veteran-owned small business without going through a competitive solicitation process 
34.23 	up to a total contract award value, including extension options, of $100,000.
34.24 	(c) The commissioner may designate a purchase of goods or services for award only to 
34.25 	a veteran-owned small business if the commissioner determines that at least three 
34.26 	veteran-owned small businesses are likely to respond to a solicitation.
34.27 	(d) The commissioner, as a condition of awarding a construction contract or approving 
34.28 	a contract for professional or technical services, may set goals that require the prime 
34.29 	contractor to subcontract a portion of the contract to a veteran-owned small business. The 
34.30 	commissioner must establish a procedure for granting waivers from the subcontracting 
34.31 	requirement when qualified veteran-owned small businesses are not reasonably available. 
34.32 	The commissioner may establish financial incentives for prime contractors who exceed the 
34.33 	goals for use of veteran-owned small business subcontractors and financial penalties for 
34.34 	prime contractors who fail to meet goals under this paragraph. The subcontracting 
35.1 	requirements of this paragraph do not apply to prime contractors who are veteran-owned 
35.2 	small businesses.
35.3 	(e) The purpose of this designation is to facilitate the transition of veterans from military 
35.4 	to civilian life, and to help compensate veterans for their sacrifices, including but not limited 
35.5 	to their sacrifice of health and time, to the state and nation during their military service, as 
35.6 	well as to enhance economic development within Minnesota.
35.7 	(f) Before the commissioner certifies that a small business is majority-owned and operated 
35.8 	by a veteran, the commissioner of veterans affairs must verify that the owner of the small 
35.9 	business is a veteran, as defined in section 197.447.

35.10 	Sec. 29. Minnesota Statutes 2024, section 16C.16, subdivision 7, is amended to read:
35.11 		Subd. 7.Economically disadvantaged areas. (a) The commissioner may award up to 
35.12 	a 12 percent preference on state procurement to small businesses located in an economically 
35.13 	disadvantaged area.
35.14 	(b) The commissioner may award a contract for goods, services, or construction directly 
35.15 	to a small business located in an economically disadvantaged area without going through 
35.16 	a competitive solicitation process up to a total contract award value, including extension 
35.17 	options, of $100,000.
35.18 	(c) The commissioner may designate a purchase of goods or services for award only to 
35.19 	a small business located in an economically disadvantaged area if the commissioner 
35.20 	determines that at least three small businesses located in an economically disadvantaged 
35.21 	area are likely to respond to a solicitation.
35.22 	(d) The commissioner, as a condition of awarding a construction contract or approving 
35.23 	a contract for professional or technical services, may set goals that require the prime 
35.24 	contractor to subcontract a portion of the contract to a small business located in an 
35.25 	economically disadvantaged area. The commissioner must establish a procedure for granting 
35.26 	waivers from the subcontracting requirement when qualified small businesses located in an 
35.27 	economically disadvantaged area are not reasonably available. The commissioner may 
35.28 	establish financial incentives for prime contractors who exceed the goals for use of 
35.29 	subcontractors that are small businesses located in an economically disadvantaged area and 
35.30 	financial penalties for prime contractors who fail to meet goals under this paragraph. The 
35.31 	subcontracting requirements of this paragraph do not apply to prime contractors who are 
35.32 	small businesses located in an economically disadvantaged area.
35.33 	(e) A business is located in an economically disadvantaged area if:
36.1 	(1) the owner resides in or the business is located in a county in which the median income 
36.2 	for married couples is less than 70 percent of the state median income for married couples;
36.3 	(2) the owner resides in or the business is located in an area designated a labor surplus 
36.4 	area by the United States Department of Labor; or
36.5 	(3) the business is a certified rehabilitation facility or extended employment provider as 
36.6 	described in chapter 268A.
36.7 	(f) The commissioner may designate one or more areas designated as targeted 
36.8 	neighborhoods under section 469.202 or as border city enterprise zones under section 
36.9 	469.166 as economically disadvantaged areas for purposes of this subdivision if the 
36.10 	commissioner determines that this designation would further the purposes of this section. 
36.11 	If the owner of a small business resides or is employed in a designated area, the small 
36.12 	business is eligible for any preference provided under this subdivision.
36.13 	(g) The Department of Revenue shall gather data necessary to make the determinations 
36.14 	required by paragraph (e), clause (1), and shall annually certify counties that qualify under 
36.15 	paragraph (e), clause (1). An area designated a labor surplus area retains that status for 120 
36.16 	days after certified small businesses in the area are notified of the termination of the 
36.17 	designation by the United States Department of Labor.

36.18 	Sec. 30. Minnesota Statutes 2024, section 16D.09, subdivision 1, is amended to read:
36.19 		Subdivision 1.Generally. (a) When a debt is determined by a state agency to be 
36.20 	uncollectible, the debt may be written off by the state agency from the state agency's financial 
36.21 	accounting records and no longer recognized as an account receivable for financial reporting 
36.22 	purposes. A debt is considered to be uncollectible when (1) all reasonable collection efforts 
36.23 	have been exhausted, (2) the cost of further collection action will exceed the amount 
36.24 	recoverable, (3) the debt is legally without merit or cannot be substantiated by evidence, 
36.25 	(4) the debtor cannot be located, (5) the available assets or income, current or anticipated, 
36.26 	that may be available for payment of the debt are insufficient, (6) the debt has been 
36.27 	discharged in bankruptcy, (7) the applicable statute of limitations for collection of the debt 
36.28 	has expired, or (8) it is not in the public interest to pursue collection of the debt.
36.29 	(b) Uncollectible debt must be reported by the state agency as part of its quarterly reports 
36.30 	to the commissioner of management and budget. The basis for the determination of the 
36.31 	uncollectibility of the debt must be maintained by the state agency. If an uncollectible debt 
36.32 	equals or exceeds $100,000, the agency shall notify the chairs and ranking minority members 
36.33 	of the legislative committees with jurisdiction over the state agency's budget at the time the 
37.1 	debt is determined to be uncollectible. The information reported shall contain the entity 
37.2 	associated with the uncollected debt, the amount of the debt, the revenue type, the reason 
37.3 	the debt is considered uncollectible, and the duration the debt has been outstanding. The 
37.4 	commissioner of management and budget shall report to the chairs and ranking minority 
37.5 	members of the legislative committees with jurisdiction over Minnesota Management and 
37.6 	Budget an annual summary of the number and dollar amount of debts determined to be 
37.7 	uncollectible during the previous fiscal year by October 31 November 30 of each year. 
37.8 	Determining that the debt is uncollectible does not cancel the legal obligation of the debtor 
37.9 	to pay the debt.

37.10 	Sec. 31. Minnesota Statutes 2024, section 43A.231, subdivision 3, is amended to read:
37.11 		Subd. 3.Procurement of a pharmacy benefit manager. (a) Notwithstanding any law 
37.12 	to the contrary, the commissioner of management and budget shall procure a contract for 
37.13 	the services of a pharmacy benefit manager to administer the prescription drug benefit and 
37.14 	pharmacy benefit management services, effective January 1, 2023. For subsequent 
37.15 	procurements, if the commissioner intends to separate prescription drug benefit and pharmacy 
37.16 	benefit management services into multiple vendors or intends to fold prescription drug 
37.17 	benefits into the overall medical benefit, rather than a single full-service pharmacy benefit 
37.18 	manager, this section shall not apply.
37.19 	(b) For the contract effective January 1, 2023, the commissioner shall conduct a reverse 
37.20 	auction as described in this section to select the pharmacy benefit manager and use a reverse 
37.21 	auction for procurement of subsequent pharmacy benefit manager contracts as provided in 
37.22 	subdivision 5, paragraph (b).
37.23 	(c) In consultation with the technology platform vendor selected under subdivision 4, 
37.24 	the commissioner shall specify the terms of a participant bidding agreement that all bidders 
37.25 	must accept as a prerequisite for participation in the reverse auction process, including:
37.26 	(1) common definitions;
37.27 	(2) prescription drug classifications;
37.28 	(3) retail pricing rules, including maximum allowable cost price lists and dispensing 
37.29 	fees; and
37.30 	(4) any other contract terms the commissioner deems necessary to further the purpose 
37.31 	of this section as specified under subdivision 2.
38.1 	(d) A pharmacy benefit manager who submits a bid under this subdivision must provide 
38.2 	the commissioner access to complete pharmacy claims data necessary for the commissioner 
38.3 	to conduct the reverse auction and to carry out administrative and management duties.
38.4 	(e) The terms of a contract entered into under this subdivision shall not be modified by 
38.5 	the pharmacy benefit manager except with the approval of the commissioner.
38.6 	(f) The commissioner may structure the contract awarded under this subdivision to pay 
38.7 	the cost of the technology platform and the associated professional services contracted for 
38.8 	under this subdivision by assessing a fee per prescription to be paid directly by the pharmacy 
38.9 	benefit manager to the technology platform vendor.
38.10 	(g) The commissioner must perform annual market checks on pharmacy benefit manager 
38.11 	services performed by the pharmacy benefit manager during the term of the contract. A 
38.12 	market check performed under this paragraph may include an evaluation of the effect of 
38.13 	alternative drug pricing metrics, such as the national average drug acquisition cost and 
38.14 	average wholesale price, on the cost of prescription drugs and savings to the state.
38.15 	(h) The commissioner shall make regular, periodic payment of invoices within the time 
38.16 	periods specified in the contract based on the automated adjudication of invoiced claims 
38.17 	using the technology platform to validate that claims payments comply with the terms of 
38.18 	the contract.
38.19 	(i) The joint labor-management committee on health plans shall assist in the process 
38.20 	through which the commissioner conducts the reverse auction, evaluation, and comparison 
38.21 	of the competing pharmacy benefit manager bids for award of the contract.

38.22 	Sec. 32. Minnesota Statutes 2024, section 43A.231, subdivision 4, is amended to read:
38.23 		Subd. 4.Technology platform. (a) At least three months before the reverse auction 
38.24 	process is scheduled to be completed, The commissioner shall procure through a competitive 
38.25 	bidding process a contract with a professional services vendor for a technology platform 
38.26 	and any associated professional services necessary to operate the platform to:
38.27 	(1) evaluate the qualifications of prospective pharmacy benefit manager bidders for the 
38.28 	pharmacy benefit manager procurement;
38.29 	(2) automatically adjudicate prescription drug claims; and
38.30 	(3) collect data on pharmacy reimbursement.
38.31 	(b) The platform procured under paragraph (a) must have the following capabilities to 
38.32 	ensure optimal performance of the reverse auction and security of data:
39.1 	(1) host and conduct an online automated reverse auction:
39.2 	(i) using a software application and high-performance data infrastructure to intake, 
39.3 	cleanse, and normalize pharmacy benefit manager data; and
39.4 	(ii) with development methods and information security standards that have been validated 
39.5 	by receiving Service Organization Control 2 (SOC 2) and National Institute of Standards 
39.6 	and Technology certification;
39.7 	(2) automate repricing of diverse and complex pharmacy benefit manager prescription 
39.8 	drug pricing proposals to enable direct comparisons of the price of bids using all annual 
39.9 	claims data available for the program using code-based classification or prescription drugs 
39.10 	from nationally accepted drug sources;
39.11 	(3) simultaneously evaluate, within six hours, diverse and complex multiple proposals 
39.12 	from full-service pharmacy benefit managers that shall include at least guaranteed net cost, 
39.13 	Average Wholesale Price and National Average Drug Acquisition Cost (NADAC) pricing 
39.14 	models, as well as proposals from pharmacy benefit administrators and specialty drug and 
39.15 	rebate carve-out services providers; and
39.16 	(4) produce an automated report and analysis of bids, including ranking of bids on the 
39.17 	comparative costs and qualitative aspects of the costs within six hours after the close of 
39.18 	each round of reverse auction bidding; and.
39.19 	(5) after the close of the reverse auction process, perform an electronic, line-by-line, 
39.20 	claim-by-claim review of all invoiced pharmacy benefit manager claims within six hours 
39.21 	of receipt that allows for an online comparison of pharmacy benefit manager invoices and 
39.22 	identifies all deviations from the specific terms of the services contract resulting from the 
39.23 	reverse auction.
39.24 	(c) The commissioner may require additional capabilities or more rigorous standards 
39.25 	than those specified in paragraph (b).
39.26 	(d) The commissioner shall not award the platform technology vendor contract under 
39.27 	this subdivision to:
39.28 	(1) a pharmacy benefit manager;
39.29 	(2) a subsidiary or affiliate of a pharmacy benefit manager; or
39.30 	(3) a vendor who is managed by a pharmacy benefit manager or who receives, directly 
39.31 	or indirectly, remuneration from a pharmacy benefit manager for aggregating clients into 
39.32 	a contractual relationship with a pharmacy benefit manager.
40.1 	(e) The vendor who is awarded the contract under this subdivision must not subcontract 
40.2 	any part of the reverse auction process or the review described under paragraph (b), clause 
40.3 	(5). The commissioner shall also hire a vendor to perform an electronic, line-by-line, 
40.4 	claim-by-claim review of all invoiced pharmacy benefit manager claims that allows for an 
40.5 	online comparison of pharmacy benefit manager invoices and identifies all deviations from 
40.6 	the specific terms of the services contract resulting from the reverse auction.  The claim 
40.7 	review vendor and the platform vendor may be the same or they may be distinct.

40.8 	Sec. 33. Minnesota Statutes 2024, section 43A.231, subdivision 6, is amended to read:
40.9 		Subd. 6.Data protections. The commissioner of management and budget may only 
40.10 	enter into an agreement with a technology platform vendor vendors under this section if the 
40.11 	agreement providesagreements provide privacy protections for data collected and maintained 
40.12 	by the technology platform vendor vendors, including:
40.13 	(1) procedures for the prevention of unauthorized access or use;
40.14 	(2) a prohibition on the sale of data collected and maintained as provided in the 
40.15 	agreement; and
40.16 	(3) a prohibition on dissemination of data unless authorized by state or federal law or 
40.17 	the agreement.

40.18 	Sec. 34. Minnesota Statutes 2024, section 43A.27, subdivision 3, is amended to read:
40.19 		Subd. 3.Retired employees. (a) A person may elect to purchase at personal expense 
40.20 	individual and dependent hospital, medical, and dental coverages if the person is:
40.21 	(1) a retired employee of the state or an organization listed in subdivision 2 or section 
40.22 	43A.24, subdivision 2, who, at separation of service:
40.23 	(i) is immediately eligible to receive a retirement benefit under chapter 354B or an 
40.24 	annuity under a retirement program sponsored by the state or such organization of the state;
40.25 	(ii) immediately meets the age and service requirements in section 352.115, subdivision 
40.26 	1; and
40.27 	(iii) has five years of service or meets the service requirement of the collective bargaining 
40.28 	agreement or plan, whichever is greater; or
40.29 	(2) a retired employee of the state who is at least 50 years of age and has at least 15 
40.30 	years of state service.
41.1 	(b) The commissioner shall offer at least one plan which is actuarially equivalent to 
41.2 	those made available through collective bargaining agreements or plans established under 
41.3 	section 43A.18 to employees in positions equivalent to that from which retired.
41.4 	(c) A spouse of a person eligible under paragraph (a) may purchase the coverage listed 
41.5 	in this subdivision if the spouse was a dependent under the retired employee's coverage at 
41.6 	the time of the retiree's death.
41.7 	(d) A spouse of a person eligible under paragraph (a) who is a dependent under the 
41.8 	retired employee's coverage may purchase the coverage listed in this subdivision if the 
41.9 	retired employee loses eligibility for coverage because the retired employee enrolls in 
41.10 	medical assistance under chapter 256B and has a disability that meets the categorical 
41.11 	eligibility requirements of the Supplemental Security Income program.
41.12 	(d) (e) Coverages must be coordinated with relevant health insurance benefits provided 
41.13 	through the federally sponsored Medicare program. Until the retired employee reaches age 
41.14 	65, the retired employee and dependents must be pooled in the same group as active 
41.15 	employees for purposes of establishing premiums and coverage for hospital, medical, and 
41.16 	dental insurance. Coverage for retired employees and their dependents may not discriminate 
41.17 	on the basis of evidence of insurability or preexisting conditions unless identical conditions 
41.18 	are imposed on active employees in the group that the employee left. Appointing authorities 
41.19 	shall provide notice to employees no later than the effective date of their retirement of the 
41.20 	right to exercise the option provided in this subdivision. The retired employee must notify 
41.21 	the commissioner or designee of the commissioner within 30 days after the effective date 
41.22 	of the retirement of intent to exercise this option.

41.23 	Sec. 35. Minnesota Statutes 2024, section 240.131, subdivision 7, is amended to read:
41.24 		Subd. 7.Payments to state. (a) A regulatory fee is imposed at the rate of one two percent 
41.25 	of all amounts wagered by Minnesota residents with an authorized advance deposit wagering 
41.26 	provider. The fee shall be declared on a form prescribed by the commission. The ADW 
41.27 	provider must pay the fee to the commission no more than 15 days after the end of the month 
41.28 	in which the wager was made. Fees collected under this paragraph must be deposited in the 
41.29 	state treasury and credited to a racing and card-playing regulation account in the special 
41.30 	revenue fund and are appropriated to the commission to offset the costs incurred by the 
41.31 	commission as described in section 240.30, subdivision 9, or the costs associated with 
41.32 	regulating horse racing and pari-mutuel wagering in Minnesota.
41.33 	(b) A breeders fund fee is imposed in the amount of one-quarter of one percent of all 
41.34 	amounts wagered by Minnesota residents with an authorized advance deposit wagering 
42.1 	provider. The fee shall be declared on a form prescribed by the commission. The ADW 
42.2 	provider must pay the fee to the commission no more than 15 days after the end of the month 
42.3 	in which the wager was made. Fees collected under this paragraph must be deposited in the 
42.4 	state treasury and credited to a racing and card-playing regulation account in the special 
42.5 	revenue fund and are appropriated to the commission to offset the cost of administering the 
42.6 	breeders fund, to support racehorse adoption, retirement, and repurposing, and promote 
42.7 	horse breeding in Minnesota.

42.8 	Sec. 36. Minnesota Statutes 2024, section 349A.01, is amended by adding a subdivision 
42.9 	to read:
42.10 		Subd. 13a.Responsible lottery official.  "Responsible lottery official" means an officer, 
42.11 	director, or owner of an organization, firm, partnership, or corporation that have oversight 
42.12 	of lottery ticket sales.

42.13 	Sec. 37. Minnesota Statutes 2024, section 349A.06, subdivision 2, is amended to read:
42.14 		Subd. 2.Qualifications. (a) The director may not contract with a retailer sole proprietor 
42.15 	to be a lottery retailer who:
42.16 	(1) is under the age of 18;
42.17 	(2) is in business solely as a seller of lottery tickets;
42.18 	(3) owes $500 or more in delinquent taxes as defined in section 270C.72;
42.19 	(4) has been convicted within the previous five years of a felony or gross misdemeanor, 
42.20 	any crime involving fraud or misrepresentation, or a gambling-related offense in any 
42.21 	jurisdiction in the United States;
42.22 	(5) is a member of the immediate family, residing in the same household, as the director 
42.23 	or any employee of the lottery;
42.24 	(6) in the director's judgment does not have the financial stability or responsibility to 
42.25 	act as a lottery retailer, or whose contracting as a lottery retailer would adversely affect the 
42.26 	public health, welfare, and safety, or endanger the security and integrity of the lottery; or
42.27 	(7) is a currency exchange, as defined in section 53A.01.
42.28 	A contract entered into before August 1, 1990, which violates clause (7) may continue 
42.29 	in effect until its expiration but may not be renewed.
42.30 	(b) The director may not contract with an organization, firm, partnership, or corporation 
42.31 	to be a lottery retailer that:
43.1 	(1) has a responsible lottery official who: (i) is under the age of 18; (ii) owes $500 or 
43.2 	more in delinquent taxes as defined in section 270C.72; or (iii) has been convicted within 
43.3 	the previous five years of a felony or gross misdemeanor, any crime involving fraud or 
43.4 	misrepresentation, or a gambling-related offense in any jurisdiction in the United States;
43.5 	(2) An organization, firm, partnership, or corporation that has a stockholder who owns 
43.6 	more than five percent of the business or the stock of the corporation, a responsible lottery 
43.7 	official, an officer, or a director, that does not meet the requirements of paragraph (a), clause 
43.8 	(4), is not eligible to be a lottery retailer under this section who is a member of the immediate 
43.9 	family of, or resides in the same household as, the director or any employee of the lottery;
43.10 	(3) is in business solely as a seller of lottery tickets;
43.11 	(4) in the director's judgment does not have the financial stability or responsibility to 
43.12 	act as a lottery retailer, or whose contracting as a lottery retailer would adversely affect 
43.13 	public health, welfare, and safety, or endanger the security and integrity of the lottery; or
43.14 	(5) is a currency exchange, as defined in section 53A.01.
43.15 	(c) The restrictions under paragraph (a), clause (4), do not apply to an organization, 
43.16 	partnership, or corporation if the director determines that the organization, partnership, or 
43.17 	firm has terminated its relationship with the individual whose actions directly contributed 
43.18 	to the disqualification under this subdivision.

43.19 	Sec. 38. Minnesota Statutes 2024, section 349A.06, subdivision 4, is amended to read:
43.20 		Subd. 4.Criminal history. (a) Upon the director's request, an applicant for a lottery 
43.21 	retailer contract must submit a completed criminal history records check consent form, a 
43.22 	full set of classifiable fingerprints, and required fees to the director or the Bureau of Criminal 
43.23 	Apprehension. Upon receipt of this information, the director must submit the completed 
43.24 	criminal history records check consent form, full set of classifiable fingerprints, and required 
43.25 	fees to the Bureau of Criminal Apprehension.
43.26 	(b) After receiving this information, the bureau must conduct a Minnesota criminal 
43.27 	history records check of the individual. The bureau is authorized to exchange the fingerprints 
43.28 	with the Federal Bureau of Investigation to obtain the applicant's national criminal history 
43.29 	record information. The bureau shall return the results of the Minnesota and national criminal 
43.30 	history records checks to the director to determine the individual's compliance with the 
43.31 	requirements of subdivision 2.
43.32 	(c) The director shall request a Minnesota and national criminal history check for any 
43.33 	sole proprietor or responsible lottery official who applies to be a lottery retailer who (1) has 
44.1 	not undergone a check under this section within the past seven years or (2) has had any 
44.2 	lapse in its contracts to sell lottery tickets.
44.3 	(d) The director may request the director of alcohol and gambling enforcement to 
44.4 	investigate all applicants for lottery retailer contracts to determine their compliance with 
44.5 	the requirements of subdivision 2. The director may issue a temporary contract, valid for 
44.6 	not more than 90 days, to an applicant pending the completion of the investigation or a final 
44.7 	determination of qualifications under this section. The director has access to all criminal 
44.8 	history data compiled by the director of alcohol and gambling enforcement and the Bureau 
44.9 	of Criminal Apprehension on (1) any person holding or applying for a retailer contract, (2) 
44.10 	any person holding a lottery vendor contract or who has submitted a bid on such a contract, 
44.11 	and (3) any person applying for employment with the lottery.

44.12 	Sec. 39. Minnesota Statutes 2024, section 349A.06, subdivision 11, is amended to read:
44.13 		Subd. 11.Cancellation, suspension, and refusal to renew contracts or locations. (a) 
44.14 	The director shall cancel the contract of any lottery retailer or prohibit a lottery retailer from 
44.15 	selling lottery tickets at a business location who:
44.16 	(1) hasis a sole proprietor or has a responsible lottery official who has been convicted 
44.17 	of a felony or gross misdemeanor in any jurisdiction in the United States;
44.18 	(2) hasis a sole proprietor or has a responsible lottery official who has committed fraud, 
44.19 	misrepresentation, or deceit any crime involving fraud or misrepresentation, or a 
44.20 	gambling-related offense in any jurisdiction in the United States;
44.21 	(3) has provided false or misleading information to the lottery; or
44.22 	(4) has acted in a manner prejudicial to public confidence in the integrity of the lottery.
44.23 	(b) The director may cancel, suspend, or refuse to renew the contract of any lottery 
44.24 	retailer or prohibit a lottery retailer from selling lottery tickets at a business location who:
44.25 	(1) changes business location;
44.26 	(2) fails to account for lottery tickets received or the proceeds from tickets sold;
44.27 	(3) fails to remit funds to the director in accordance with the director's rules;
44.28 	(4) violates a law or a rule or order of the director;
44.29 	(5) fails to comply with any of the terms in the lottery retailer's contract;
44.30 	(6) fails to file a bond, securities, or a letter of credit as required under subdivision 3;
45.1 	(7) in the opinion of the director fails to maintain a sufficient sales volume to justify 
45.2 	continuation as a lottery retailer; or
45.3 	(8) has violated section 340A.503, subdivision 2, clause (1), two or more times within 
45.4 	a two-year period.
45.5 	(c) The director may also cancel, suspend, or refuse to renew a lottery retailer's contract 
45.6 	or prohibit a lottery retailer from selling lottery tickets at a business location if there is a 
45.7 	material change in any of the factors considered by the director under subdivision 2.
45.8 	(d) A contract cancellation, suspension, refusal to renew, or prohibiting a lottery retailer 
45.9 	from selling lottery tickets at a business location under this subdivision is a contested case 
45.10 	under sections 14.57 to 14.69 and is in addition to any criminal penalties provided for a 
45.11 	violation of law or rule.
45.12 	(e) The director may temporarily suspend a contract or temporarily prohibit a lottery 
45.13 	retailer from selling lottery tickets at a business location without notice for any of the reasons 
45.14 	specified in this subdivision provided that a hearing is conducted within seven days after a 
45.15 	request for a hearing is made by a lottery retailer. Within 20 days after receiving the 
45.16 	administrative law judge's report, the director shall issue an order vacating the temporary 
45.17 	suspension or prohibition or making any other appropriate order. If no hearing is requested 
45.18 	within 30 days of the temporary suspension or prohibition taking effect, the suspension or 
45.19 	prohibition becomes permanent unless the director vacates or modifies the order.

45.20 	Sec. 40. REVISOR INSTRUCTION.
 45.21 	The revisor of statutes shall change the term "Office of Administrative Hearings" to 
45.22 	"Court of Administrative Hearings" wherever the term appears in Minnesota Statutes. The 
45.23 	revisor of statutes shall also change the term "office" to "court" wherever the term "office" 
45.24 	appears and refers to the Office of Administrative Hearings in Minnesota Statutes.

45.25 	Sec. 41. REPEALER.
 45.26 		Subdivision 1.Political and campaign provisions.  Minnesota Statutes 2024, sections 
45.27 	211B.06; and 211B.08, are repealed.
45.28 		Subd. 2.Model ordinance for outdoor lighting. Minnesota Statutes 2024, section 
45.29 	16B.328, subdivision 2, is repealed.
45.30 		Subd. 3.Reorganization services under master contract. Minnesota Statutes 2024, 
45.31 	section 16C.36, is repealed.
46.1 		Subd. 4.Legislative auditor. Minnesota Statutes 2024, section 16B.45, is repealed.

46.2 	ARTICLE 3
46.3 	STATE PERSONNEL MANAGEMENT

46.4 	Section 1. Minnesota Statutes 2024, section 43A.01, subdivision 3, is amended to read:
46.5 		Subd. 3.Equitable compensation relationships. It is the policy of this state to attempt
46.6 	to establish equitable compensation relationships between female-dominated, 
46.7 	male-dominated, and balanced classes of employees in the executive branch. Compensation 
46.8 	relationships are equitable within the meaning of this subdivision when the primary 
46.9 	consideration in negotiating, establishing, recommending, and approving total compensation 
46.10 	is comparability of the value of the work in relationship to other positions classifications
46.11 	in the executive branch.

46.12 	Sec. 2. Minnesota Statutes 2024, section 43A.02, subdivision 14, is amended to read:
46.13 		Subd. 14.Commissioner's Nonrepresented employees compensation
46.14 	plan. "Commissioner's Nonrepresented employees compensation plan" means the plan 
46.15 	required by section 3.855 regarding total compensation and terms and conditions of 
46.16 	employment, including grievance administration, for employees of the executive branch 
46.17 	who are not otherwise provided for in this chapter or other law.

46.18 	Sec. 3. Minnesota Statutes 2024, section 43A.04, subdivision 1, is amended to read:
46.19 		Subdivision 1.Statewide leadership. (a) The commissioner is the chief personnel and 
46.20 	labor relations manager of the civil service in the executive branch.
46.21 	Whenever any power or responsibility is given to the commissioner by any provision 
46.22 	of this chapter, unless otherwise expressly provided, the power or authority applies to all 
46.23 	employees of agencies in the executive branch and to employees in classified positions in 
46.24 	the Office of the Legislative Auditor, the Minnesota State Retirement System, the Public 
46.25 	Employees Retirement Association, and the Teacher's Retirement Association. Unless 
46.26 	otherwise provided by law, the power or authority does not apply to unclassified employees 
46.27 	in the legislative and judicial branches.
46.28 	(b) The commissioner shall operate an information system from which personnel data, 
46.29 	as defined in section 13.43, concerning employees and applicants for positions in the 
46.30 	classified service can be retrieved.
47.1 	The commissioner has access to all public and private personnel data kept by appointing 
47.2 	authorities that will aid in the discharge of the commissioner's duties.
47.3 	(c) The commissioner may consider and investigate any matters concerned with the 
47.4 	administration of provisions of this chapter, and may order any remedial actions consistent 
47.5 	with law. The commissioner, at the request of an agency, shall provide assistance in employee 
47.6 	misconduct investigations. Upon request of the appointing authority, the commissioner may 
47.7 	issue determinations on personnel matters regarding board-appointed executive directors 
47.8 	or leaders. The commissioner shall have the right to assess from the requesting agency, any 
47.9 	costs incurred while assisting the agency in the employee misconduct investigation. Money 
47.10 	received by the commissioner under this paragraph is appropriated to the commissioner for 
47.11 	purposes of this paragraph.
47.12 	(d) The commissioner may assess or establish and collect premiums from all state entities 
47.13 	to cover the costs of programs under sections section15.46and 176.603.

47.14 	Sec. 4. Minnesota Statutes 2024, section 43A.04, subdivision 4, is amended to read:
47.15 		Subd. 4.Administrative procedures. The commissioner shall develop administrative 
47.16 	procedures, which are not subject to the rulemaking provisions of the Administrative 
47.17 	Procedure Act, to effect provisions of chapter 43A which do not directly affect the rights 
47.18 	of or processes available to the general public. The commissioner may also adopt 
47.19 	administrative procedures, not subject to the Administrative Procedure Act, which concern 
47.20 	topics affecting the general public if those procedures concern only the internal management 
47.21 	of the department or other agencies and if those elements of the topics which affect the 
47.22 	general public are the subject of department rules.
47.23 	Administrative procedures shall be reproduced and made available for comment in 
47.24 	accessible digital formats under section 16E.03 to agencies, employees, and appropriate 
47.25 	exclusive representatives certified pursuant to sections 179A.01 to 179A.25, for at least 15 
47.26 	days prior to implementation and shall include but are not limited to:
47.27 	(1) maintenance and administration of a plan of classification for all positions in the 
47.28 	classified service and for comparisons of unclassified positions with positions in the classified 
47.29 	service;
47.30 	(2) procedures for administration of collective bargaining agreements and plans 
47.31 	established pursuant to section 43A.18 concerning total compensation and the terms and 
47.32 	conditions of employment for employees;
48.1 	(3) procedures for effecting all personnel actions internal to the state service such as 
48.2 	processes and requirements for agencies to publicize job openings and consider applicants 
48.3 	who are referred or nominate themselves apply, conduct of selection procedures limited to 
48.4 	employees, noncompetitive and qualifying appointments of employees and leaves of absence;
48.5 	(4) maintenance and administration of employee performance appraisal, training and 
48.6 	other programs; and
48.7 	(5) procedures for pilots of the reengineered employee selection process. Employment 
48.8 	provisions of this chapter, associated personnel rules adopted under subdivision 3, and 
48.9 	administrative procedures established under clauses (1) and (3) may be waived for the 
48.10 	purposes of these pilots. The pilots may affect the rights of and processes available to 
48.11 	members of the general public seeking employment in the classified service. The 
48.12 	commissioner will provide public notice of any pilot directly affecting the rights of and 
48.13 	processes available to the general public and make the administrative procedures available 
48.14 	for comment to the general public, agencies, employees, and appropriate exclusive 
48.15 	representatives certified pursuant to sections 179A.01 to 179A.25 for at least 30 days prior 
48.16 	to implementation. The commissioner must publish the public notice in an accessible digital 
48.17 	format under section 16E.03. The commissioner must provide a comment process that allows 
48.18 	the public to submit comments through multiple formats to ensure accessibility. These 
48.19 	formats must include telephone, digital content, and email.

48.20 	Sec. 5. Minnesota Statutes 2024, section 43A.04, subdivision 8, is amended to read:
48.21 		Subd. 8.Donation of time. Notwithstanding any law to the contrary, the commissioner 
48.22 	shall authorize the appointing authority to permit the donation of up to eight hours of 
48.23 	accumulated vacation time in each year by each employee who is a member of law 
48.24 	enforcement unit number 1, 18, or 19 to their union representative for the purpose of carrying 
48.25 	out the duties of office.

48.26 	Sec. 6. Minnesota Statutes 2024, section 43A.05, subdivision 3, is amended to read:
48.27 		Subd. 3.Commissioner's Nonrepresented employees compensation plan. The 
48.28 	commissioner shall periodically develop and establish pursuant to this chapter a 
48.29 	commissioner's nonrepresented employees compensation plan. The commissioner shall 
48.30 	submit the plan to the Legislative Coordinating Commission.

49.1 	Sec. 7. Minnesota Statutes 2024, section 43A.08, subdivision 1a, is amended to read:
49.2 		Subd. 1a.Additional unclassified positions. Appointing authorities for the following 
49.3 	agencies may designate additional unclassified positions according to this subdivision: the 
49.4 	Departments of Administration; Agriculture; Children, Youth, and Families; Commerce; 
49.5 	Corrections; Education; Employment and Economic Development; Explore Minnesota 
49.6 	Tourism; Management and Budget; Health; Human Rights; Human Services; Labor and 
49.7 	Industry; Natural Resources; Public Safety; Revenue; Transportation; and Veterans Affairs; 
49.8 	the Housing Finance and Pollution Control Agencies; the State Lottery; the State Board of 
49.9 	Investment; the Office of Administrative Hearings; the Department of Information 
49.10 	Technology Services; an agency, including the Offices of the Attorney General, Secretary 
49.11 	of State, and State Auditor; the Minnesota State Colleges and Universities; the Minnesota 
49.12 	Office of Higher Education; the Perpich Center for Arts Education; Direct Care and 
49.13 	Treatment; the Minnesota Zoological Board; and the Office of Emergency Medical Services, 
49.14 	may designate additional unclassified positions.
49.15 	A position designated by an appointing authority according to this subdivision must 
49.16 	meet the following standards and criteria:
49.17 	(1) the designation of the position would not be contrary to other law relating specifically 
49.18 	to that agency;
49.19 	(2) the person occupying the position would report directly to the agency head or deputy 
49.20 	agency head and would be designated as part of the agency head's management team;
49.21 	(3) the duties of the position would involve significant discretion and substantial 
49.22 	involvement in the development, interpretation, and implementation of agency policy;
49.23 	(4) the duties of the position would not require primarily personnel, accounting, or other 
49.24 	technical expertise where continuity in the position would be important;
49.25 	(5) there would be a need for the person occupying the position to be accountable to, 
49.26 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
49.27 	board or commission, or the employing constitutional officer;
49.28 	(6) the position would be at the level of division or bureau director or assistant to the 
49.29 	agency head; and
49.30 	(7) the commissioner has approved the designation as being consistent with the standards 
49.31 	and criteria in this subdivision.

50.1 	Sec. 8. Minnesota Statutes 2024, section 43A.08, subdivision 4, is amended to read:
50.2 		Subd. 4.Length of service for student workers. A person may notonly be employed 
50.3 	as a student worker in the unclassified service under subdivision 1 for more than 36 months. 
50.4 	Employment at a school that a student attends is not counted for purposes of this 36-month 
50.5 	limit. Student workers in the Minnesota Department of Transportation SEEDS program 
50.6 	who are actively involved in a four-year degree program preparing for a professional career 
50.7 	job in the Minnesota Department of Transportation may be employed as a student worker 
50.8 	for up to 48 months if the person is enrolled in secondary, postsecondary, or graduate study.

50.9 	Sec. 9. Minnesota Statutes 2024, section 43A.11, subdivision 9, is amended to read:
50.10 		Subd. 9.Rejection Nonselection; explanation. If the appointing authority rejectsdoes 
50.11 	not select a member of the finalist pool who has claimed veteran's preference, the appointing 
50.12 	authority shall notify the finalist in writing of the reasons for the rejection.

50.13 	Sec. 10. Minnesota Statutes 2024, section 43A.121, is amended to read:
50.14 	43A.121 RANKING OF THE APPLICANT POOL.
50.15 	Applicants referred from a layoff list shall be ranked as provided in the collective 
50.16 	bargaining agreement or plan established under section 43A.18, under which the layoff list 
50.17 	was established. All other names in an applicant pool shall be ranked according to the 
50.18 	veteran's preference provisions of section 43A.11, subdivision 7, and then in descending 
50.19 	order of the number of skill matches for the vacant position. If any ties in rank remain, those 
50.20 	names shall appear in alphabetical order.

50.21 	Sec. 11. Minnesota Statutes 2024, section 43A.15, subdivision 4, is amended to read:
50.22 		Subd. 4.Provisional appointments. The commissioner may authorize an appointing 
50.23 	authority to make a provisional appointment if no applicant is suitable or available for 
50.24 	appointment and the person to be provisionally appointed is qualified in all respects except 
50.25 	for completion of a licensure or certification requirement.
50.26 	No person shall be employed on a provisional basis for more than six months unless the 
50.27 	commissioner grants an extension to a maximum of 12 months in the best interest of the 
50.28 	state. No extension may be granted beyond 12 months except where there is a lack of 
50.29 	applicants and the provisional appointee is continuing to work to complete the licensure or 
50.30 	certification requirement.
51.1 	At the request of an appointing authority, the commissioner may authorize the 
51.2 	probationary appointment of a provisional appointee who has performed satisfactorily for 
51.3 	at least 60 days and has completed the licensure or certification requirement.

51.4 	Sec. 12. Minnesota Statutes 2024, section 43A.15, subdivision 7, is amended to read:
51.5 		Subd. 7.Appointments for unclassified incumbents of newly classified positions. The 
51.6 	commissioner may authorize the probationary appointment of an incumbent who has passed 
51.7 	a qualifying selection process and who has served at least one year in an unclassified position 
51.8 	which has been placed in the classified service by proper authority.

51.9 	Sec. 13. Minnesota Statutes 2024, section 43A.15, subdivision 12, is amended to read:
51.10 		Subd. 12.Work-training Trainee appointments. The commissioner may authorize 
51.11 	the probationary appointment of persons who successfully complete on-the-job state training 
51.12 	programs which that have been approved by the commissioner.

51.13 	Sec. 14. Minnesota Statutes 2024, section 43A.15, subdivision 14, is amended to read:
51.14 		Subd. 14.700-hour on-the-job demonstration experience. (a) The commissioner shall 
51.15 	consult with the Department of Employment and Economic Development's Vocational 
51.16 	Rehabilitation Services and State Services for the Blind and other disability experts in 
51.17 	establishing, reviewing, and modifying the qualifying procedures for applicants whose 
51.18 	disabilities are of such a significant nature that the applicants are unable to demonstrate 
51.19 	their abilities in the selection process. The qualifying procedures must consist of up to 700 
51.20 	hours of on-the-job demonstration experience. The 700-hour on-the-job demonstration 
51.21 	experience is an alternative, noncompetitive hiring process for qualified applicants with 
51.22 	disabilities. All permanent executive branch classified positions are eligible for a 700-hour 
51.23 	on-the-job demonstration experience, and all permanent classified job postings must provide 
51.24 	information regarding the on-the-job demonstration overview and certification process.
51.25 	(b) The commissioner may shall authorize the probationary appointment of an applicant 
51.26 	based on the request of the appointing authority that documents that the applicant has 
51.27 	successfully demonstrated qualifications for the position through completion of an on-the-job 
51.28 	demonstration experience. A qualified applicant should shall be converted to permanent,a 
51.29 	probationary appointments appointment at the point in the 700-hour on-the-job experience 
51.30 	when the applicant has demonstrated the ability to perform the essential functions of the 
51.31 	job with or without reasonable accommodation. The implementation of this subdivision 
51.32 	may not be deemed a violation of chapter 43A or 363A.
52.1 	(c) The commissioner and the ADA and disability employment director, described in 
52.2 	section 43A.19, subdivision 1, paragraph (e), are responsible for the administration and 
52.3 	oversight of the 700-hour on-the-job demonstration experience, including the establishment 
52.4 	of policies and procedures, data collection and reporting requirements, and compliance.
52.5 	(d) The commissioner or the commissioner's designee shall design and implement a 
52.6 	training curriculum for the 700-hour on-the-job demonstration experience. All executive 
52.7 	leaders, managers, supervisors, human resources professionals, affirmative action officers, 
52.8 	and ADA coordinators must receive annual training on the program.
52.9 	(e) The commissioner or the commissioner's designee shall develop, administer, and 
52.10 	make public a formal grievance process for individuals in the 700-hour on-the-job 
52.11 	demonstration experience under this subdivision and supported work program under section 
52.12 	43A.421, subdivision 2.
52.13 	(f) An appointing authority must make reasonable accommodations in response to a 
52.14 	request from an applicant with a disability, including providing accommodations in a timely 
52.15 	manner during the application and hiring process and throughout the 700-hour on-the-job 
52.16 	demonstration experience. Requirements for accessibility for public records under section 
52.17 	363A.42, continuing education under section 363A.43, and technology under section 16E.03, 
52.18 	subdivision 2, clauses (3) and (9), apply to an agency filling an appointment during the 
52.19 	application and hiring process and through the on-the-job demonstration experience period.

52.20 	Sec. 15. Minnesota Statutes 2024, section 43A.17, subdivision 5, is amended to read:
52.21 		Subd. 5.Salary on demotion; special cases. The commissioner may, upon request of 
52.22 	an appointing authority, approve payment of an employee with permanent status at a salary 
52.23 	rate above the maximum of the class to which the employee is demoted. The commissioner 
52.24 	shall take such action as required by collective bargaining agreements or plans pursuant to 
52.25 	section 43A.18. If the action is justified by the employee's long or outstanding service, 
52.26 	exceptional or technical qualifications, age, health, or substantial changes in work assignment 
52.27 	beyond the control of the employee, the commissioner may approve a rate up to and including 
52.28 	the employee's salary immediately prior to demotion. Thereafter, so long as the employee 
52.29 	remains in the same position, the employee shall not be eligible to receive any increase in 
52.30 	salary until the employee's salary is within the range of the class to which the employee's 
52.31 	position is allocated unless such increases are specifically provided in collective bargaining 
52.32 	agreements or plans pursuant to section 43A.18.

53.1 	Sec. 16. Minnesota Statutes 2024, section 43A.181, subdivision 1, is amended to read:
53.2 		Subdivision 1.Donation of vacation time. A state employee may donate up to 12 hours 
53.3 	of accrued vacation time in any fiscal year to the account established by subdivision 2 for 
53.4 	the benefit of another state employee. The employee must notify the employee's agency 
53.5 	head of the amount of accrued vacation time the employee wishes to donate and the name 
53.6 	of the other state employee who is to benefit from the donation. The agency head shall 
53.7 	determine the monetary value of the donated time, using the gross salary of the employee 
53.8 	making the donation. The agency head shall transfer that amount, less deductions for 
53.9 	applicable taxes and retirement contributions, to the account established by subdivision 2.
53.10 	A donation of accrued vacation time is irrevocable once its monetary value has been 
53.11 	transferred to the account.

53.12 	Sec. 17. Minnesota Statutes 2024, section 43A.1815, is amended to read:
53.13 	43A.1815 VACATION DONATION TO SICK LEAVE ACCOUNT.
53.14 	(a) In addition to donations under section 43A.181, a state employee may donate a total 
53.15 	of up to 40 hours of accrued vacation leave each fiscal year to the sick leave account of one 
53.16 	or more state employees. A state employee may not be paid for more than 80 hours in a 
53.17 	payroll period during which the employee uses sick leave credited to the employee's account 
53.18 	as a result of a transfer from another state employee's vacation account.
53.19 	(b) At retirement, eligible state employees may donate additional accumulated vacation 
53.20 	hours in excess of their vacation payout at time of retirement into a general pool, even if 
53.21 	they already have donated 40 hours.
53.22 	(b) (c) The recipient employee must receive donations, as available, for a life-threatening 
53.23 	condition of the employee or spouse or dependent child that prevents the employee from 
53.24 	working. A recipient may use program donations retroactively to when all forms of paid 
53.25 	leave are exhausted if the employee has sufficient donations to cover the period of 
53.26 	retroactivity. A recipient who receives program donations under this section may use up to 
53.27 	80 hours of program donations after the death of a spouse or dependent child.
53.28 	(c) (d) An applicant for benefits under this section who receives an unfavorable 
53.29 	determination may select a designee to consult with the commissioner or commissioner's 
53.30 	designee on the reasons for the determination.
53.31 	(d) (e) The commissioner shall establish procedures under section 43A.04, subdivision 
53.32 	4, for eligibility, duration of need based on individual cases, monitoring and evaluation of 
53.33 	individual eligibility status, and other topics related to administration of this program.

54.1 	Sec. 18. Minnesota Statutes 2024, section 43A.19, subdivision 1, is amended to read:
54.2 		Subdivision 1.Statewide affirmative action program. (a) To assure that positions in 
54.3 	the executive branch of the civil service are equally accessible to all qualified persons, and 
54.4 	to eliminate the effects of past and present discrimination, intended or unintended, on the 
54.5 	basis of protected group status, the commissioner shall adopt and periodically revise, if 
54.6 	necessary, a statewide affirmative action program. The statewide affirmative action program 
54.7 	must consist of at least the following:
54.8 	(1) objectives, goals, and policies;
54.9 	(2) procedures, standards, and assumptions to be used by agencies in the preparation of 
54.10 	agency affirmative action plans, including methods by which goals and timetables are 
54.11 	established;
54.12 	(3) the analysis of separation patterns to determine the impact on protected group 
54.13 	members; and
54.14 	(4) requirements for annual objectives and submission of affirmative action progress 
54.15 	reports from heads of agencies.
54.16 	Agency heads must report the data in clause (3) to the state Director of Recruitment, 
54.17 	Retention and Affirmative Action and the state ADA coordinator, in addition to being 
54.18 	available to anyone upon request. The commissioner must annually post the aggregate and 
54.19 	agency-level reports under clause (4) on the agency's website.
54.20 	(b) The commissioner shall establish statewide affirmative action goals for each of the 
54.21 	federal Equal Employment Opportunity (EEO) occupational categories applicable to state 
54.22 	employment, using at least the following factors:
54.23 	(1) the percentage of members of each protected class in the recruiting area population 
54.24 	who have the necessary skills; and
54.25 	(2) the availability for promotion or transfer of current employees who are members of 
54.26 	protected classes.
54.27 	(c) The commissioner may use any of the following factors in addition to the factors 
54.28 	required under paragraph (b):
54.29 	(1) the extent of unemployment of members of protected classes in the recruiting area 
54.30 	population;
54.31 	(2) the existence of training programs in needed skill areas offered by employing agencies 
54.32 	and other institutions; and
55.1 	(3) the expected number of available positions to be filled.
55.2 	(d) The commissioner shall designate a state director of diversity and equal employment 
55.3 	opportunity who may be delegated the preparation, revision, implementation, and 
55.4 	administration of the program. The commissioner of management and budget may place 
55.5 	the director's position in the unclassified service if the position meets the criteria established 
55.6 	in section 43A.08, subdivision 1a.
55.7 	(e) The commissioner shall designate a statewide ADA and disability employment 
55.8 	director. The commissioner may delegate the preparation, revision, implementation, 
55.9 	evaluation, and administration of the program to the director. The director must administer 
55.10 	the 700-hour on-the-job demonstration experience under the supported work program and 
55.11 	disabled veteran's employment programs. The ADA and disability employment director 
55.12 	shall have education, knowledge, and skills in disability policy, employment, and the ADA. 
55.13 	The commissioner may place the director's position in the unclassified service if the position 
55.14 	meets the criteria established in section 43A.08, subdivision 1a.
55.15 	(f) Agency affirmative action plans, including reports and progress, must be posted on 
55.16 	the agency's public and internal websites within 30 days of being approved. The 
55.17 	commissioner of management and budget shall post a link to all executive branch 
55.18 	agency-approved affirmative action plans on its public website. Accessible copies of the 
55.19 	affirmative action plan must be available to all employees and members of the general public 
55.20 	upon request.

55.21 	Sec. 19. Minnesota Statutes 2024, section 43A.23, subdivision 1, is amended to read:
55.22 		Subdivision 1.General. (a) The commissioner is authorized to request proposals or to 
55.23 	negotiate and to enter into contracts with parties which in the judgment of the commissioner 
55.24 	are best qualified to provide service to the benefit plans. Contracts entered into are not 
55.25 	subject to the requirements of sections 16C.16 to 16C.19. The commissioner may negotiate 
55.26 	premium rates and coverage. The commissioner shall consider the cost of the plans, 
55.27 	conversion options relating to the contracts, service capabilities, character, financial position, 
55.28 	and reputation of the carriers, and any other factors which that the commissioner deems 
55.29 	appropriate. Each benefit contract must be for a uniform term of at least one year, but may 
55.30 	be made automatically renewable from term to term in the absence of notice of termination 
55.31 	by either party. A carrier licensed under chapter 62A is exempt from the taxes imposed by 
55.32 	chapter 297I on premiums paid to it by the state.
55.33 	(b) All self-insured hospital and medical service products must comply with coverage 
55.34 	mandates, data reporting, and consumer protection requirements applicable to the licensed 
56.1 	carrier administering the product, had the product been insured, including chapters 62J, 
56.2 	62M, and 62Q. Any self-insured products that limit coverage to a network of providers or 
56.3 	provide different levels of coverage between network and nonnetwork providers shall comply 
56.4 	with section 62D.123 and geographic access standards for health maintenance organizations 
56.5 	adopted by the commissioner of health in rule under chapter 62D.
56.6 	(c) Notwithstanding paragraph (b), a self-insured hospital and medical product offered 
56.7 	under sections 43A.22 to 43A.30 is required to extend dependent coverage to an eligible 
56.8 	employee's child to the full extent required under chapters 62A and 62L. Dependent child 
56.9 	coverage must, at a minimum, extend to an eligible employee's dependent child to the 
56.10 	limiting age as defined in section 62Q.01, subdivision 2a, disabled children to the extent 
56.11 	required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required 
56.12 	in sections 62A.042 and 62A.302.
56.13 	(d) Beginning January 1, 2010, the health insurance benefit plans offered in the 
56.14 	commissioner's nonrepresented employees compensation plan under section 43A.18, 
56.15 	subdivision 2, and the managerial plan under section 43A.18, subdivision 3, must include 
56.16 	an option for a health plan that is compatible with the definition of a high-deductible health 
56.17 	plan in section 223 of the United States Internal Revenue Code.

56.18 	Sec. 20. Minnesota Statutes 2024, section 43A.23, subdivision 2, is amended to read:
56.19 		Subd. 2.Contract to contain statement of benefits. (a) Each contract under sections 
56.20 	43A.22 to 43A.30 shall contain a detailed statement of benefits offered and shall include 
56.21 	any maximums, limitations, exclusions, and other definitions of benefits the commissioner 
56.22 	deems necessary or desirable. Each hospital and medical benefits contract shall provide 
56.23 	benefits at least equal to those required by section 62E.06, subdivision 2.
56.24 	(b) All summaries of benefits describing the hospital and medical service benefits offered 
56.25 	to state employees must comply with laws and rules for content and clarity applicable to 
56.26 	the licensed carrier administering the product. Referral procedures must be clearly described. 
56.27 	The commissioners of commerce and health, as appropriate, shall may review the summaries 
56.28 	of benefits, whether written or electronic, and advise the commissioner on any changes 
56.29 	needed to ensure compliance.

56.30 	Sec. 21. Minnesota Statutes 2024, section 43A.24, subdivision 1a, is amended to read:
56.31 		Subd. 1a.Opt out. (a) An individual eligible for state-paid hospital, medical, and dental 
56.32 	benefits under this section has the right to decline those benefits, provided the individual 
56.33 	declining the benefits can prove health insurance coverage from another source. Any 
57.1 	individual declining benefits must do so in writing, signed and dated, on a form provided 
57.2 	by the commissioner.
57.3 	(b) The commissioner must create, and make available in hard copy and online a form 
57.4 	for individuals to use in declining state-paid hospital, medical, and dental benefits. The form 
57.5 	must, at a minimum, include notice to the declining individual of the next available 
57.6 	opportunity and procedure to re-enroll in the benefits.
57.7 	(c) No later than January 15 of each year, the commissioner of management and budget 
57.8 	must provide a report to the chairs and ranking minority members of the legislative 
57.9 	committees with jurisdiction over state government finance on the number of employees 
57.10 	choosing to opt-out of state employee group insurance coverage under this section. The 
57.11 	report must provide itemized statistics, by agency, and include the total amount of savings 
57.12 	accrued to each agency resulting from the opt-outs.

57.13 	Sec. 22. Minnesota Statutes 2024, section 43A.24, subdivision 2, is amended to read:
57.14 		Subd. 2.Other eligible persons. The following persons are eligible for state paid life 
57.15 	insurance and hospital, medical, and dental benefits as determined in applicable collective 
57.16 	bargaining agreements or by the commissioner or by plans pursuant to section 43A.18, 
57.17 	subdivision 6, or by the Board of Regents for employees of the University of Minnesota 
57.18 	not covered by collective bargaining agreements. Coverages made available, including 
57.19 	optional coverages, are as contained in the plan established pursuant to section 43A.18, 
57.20 	subdivision 2:
57.21 	(1) a member of the state legislature, provided that changes in benefits resulting in 
57.22 	increased costs to the state shall not be effective until expiration of the term of the members 
57.23 	of the existing house of representatives. An eligible member of the state legislature may 
57.24 	decline to be enrolled for state paid coverages by filing a written waiver with the 
57.25 	commissioner. The waiver shall not prohibit the member from enrolling the member or 
57.26 	dependents for optional coverages, without cost to the state, as provided for in section 
57.27 	43A.26. A member of the state legislature who returns from a leave of absence to a position 
57.28 	previously occupied in the civil service shall be eligible to receive the life insurance and 
57.29 	hospital, medical, and dental benefits to which the position is entitled;
57.30 	(2) an employee of the legislature or an employee of a permanent study or interim 
57.31 	committee or commission or a state employee on leave of absence to work for the legislature, 
57.32 	during a regular or special legislative session, as determined by the Legislative Coordinating 
57.33 	Commission;
58.1 	(3) a judge of the appellate courts or an officer or employee of these courts; a judge of 
58.2 	the district court, a judge of county court, or a judge of county municipal court; a district 
58.3 	court referee, judicial officer, court reporter, or law clerk; a district administrator; an 
58.4 	employee of the Office of the District Administrator that is not in the Second or Fourth 
58.5 	Judicial District; a court administrator or employee of the court administrator in a judicial 
58.6 	district under section 480.181, subdivision 1, paragraph (b), and a guardian ad litem program 
58.7 	employee;
58.8 	(4) a salaried employee of the Public Employees Retirement Association;
58.9 	(5) a full-time military or civilian officer or employee in the unclassified service of the 
58.10 	Department of Military Affairs whose salary is paid from state funds;
58.11 	(6) an employee of the Minnesota Historical Society, whether paid from state funds or 
58.12 	otherwise, who is not a member of the governing board;
58.13 	(7) an employee of the regents of the University of Minnesota;
58.14 	(8) (7) notwithstanding section 43A.27, subdivision 3, an employee of the state of 
58.15 	Minnesota or the regents of the University of Minnesota who is at least 60 and not yet 65 
58.16 	years of age on July 1, 1982, who is otherwise eligible for employee and dependent insurance 
58.17 	and benefits pursuant to section 43A.18 or other law, who has at least 20 years of service 
58.18 	and retires, earlier than required, within 60 days of March 23, 1982; or an employee who 
58.19 	is at least 60 and not yet 65 years of age on July 1, 1982, who has at least 20 years of state 
58.20 	service and retires, earlier than required, from employment at Rochester state hospital after 
58.21 	July 1, 1981; or an employee who is at least 55 and not yet 65 years of age on July 1, 1982, 
58.22 	and is covered by the Minnesota State Retirement System correctional employee retirement 
58.23 	plan or the State Patrol retirement fund, who has at least 20 years of state service and retires, 
58.24 	earlier than required, within 60 days of March 23, 1982. For purposes of this clause, a person 
58.25 	retires when the person terminates active employment in state or University of Minnesota 
58.26 	service and applies for a retirement annuity. Eligibility shall cease when the retired employee 
58.27 	attains the age of 65, or when the employee chooses not to receive the annuity that the 
58.28 	employee has applied for. The retired employee shall be eligible for coverages to which the 
58.29 	employee was entitled at the time of retirement, subject to any changes in coverage through 
58.30 	collective bargaining or plans established pursuant to section 43A.18, for employees in 
58.31 	positions equivalent to that from which retired, provided that the retired employee shall not 
58.32 	be eligible for state-paid life insurance. Coverages shall be coordinated with relevant health 
58.33 	insurance benefits provided through the federally sponsored Medicare program;
59.1 	(9) (8) an employee of an agency of the state of Minnesota identified through the process 
59.2 	provided in this paragraph who is eligible to retire prior to age 65. The commissioner and 
59.3 	the exclusive representative of state employees shall enter into agreements under section 
59.4 	179A.22 to identify employees whose positions are in programs that are being permanently 
59.5 	eliminated or reduced due to federal or state policies or practices. Failure to reach agreement 
59.6 	identifying these employees is not subject to impasse procedures provided in chapter 179A. 
59.7 	The commissioner must prepare a plan identifying eligible employees not covered by a 
59.8 	collective bargaining agreement in accordance with the process outlined in section 43A.18, 
59.9 	subdivisions 2 and 3. For purposes of this paragraph, a person retires when the person 
59.10 	terminates active employment in state service and applies for a retirement annuity. Eligibility 
59.11 	ends as provided in the agreement or plan, but must cease at the end of the month in which 
59.12 	the retired employee chooses not to receive an annuity, or the employee is eligible for 
59.13 	employer-paid health insurance from a new employer. The retired employees shall be eligible 
59.14 	for coverages to which they were entitled at the time of retirement, subject to any changes 
59.15 	in coverage through collective bargaining or plans established under section 43A.18 for 
59.16 	employees in positions equivalent to that from which they retired, provided that the retired 
59.17 	employees shall not be eligible for state-paid life insurance;
59.18 	(10) (9) employees of the state Board of Public Defense, with eligibility determined by 
59.19 	the state Board of Public Defense in consultation with the commissioner of management 
59.20 	and budget; and
59.21 	(11) (10) employees of supporting organizations of Enterprise Minnesota, Inc., established 
59.22 	after July 1, 2003, under section 116O.05, subdivision 4, as paid for by the supporting 
59.23 	organization.

59.24 	Sec. 23. Minnesota Statutes 2024, section 43A.27, subdivision 2, is amended to read:
59.25 		Subd. 2.Elective eligibility. The following persons, if not otherwise covered by section 
59.26 	43A.24, may elect coverage for themselves or their dependents at their own expense:
59.27 	(1) a state employee, including persons on layoff from a civil service position as provided 
59.28 	in collective bargaining agreements or a plan established pursuant to section 43A.18;
59.29 	(2) an employee of the Board of Regents of the University of Minnesota, including 
59.30 	persons on layoff, as provided in collective bargaining agreements or by the Board of 
59.31 	Regents;
59.32 	(3) (2) an officer or employee of the State Agricultural Society, Center for Rural Policy 
59.33 	and Development, Agricultural Utilization Research Institute, State Horticultural Society, 
60.1 	Sibley House Association, Minnesota Humanities Center Commission, Minnesota Area 
60.2 	Industry Labor Management Councils, Minnesota International Center, Minnesota Academy 
60.3 	of Science, Science Museum of Minnesota, Minnesota Safety Council, state Office of 
60.4 	Disabled American Veterans, state Office of the American Legion and its auxiliary, state 
60.5 	Office of Veterans of Foreign Wars and its auxiliary, or state Office of the Military Order 
60.6 	of the Purple Heart;
60.7 	(4) (3) a civilian employee of the adjutant general who is paid from federal funds and 
60.8 	who is not eligible for benefits from any federal civilian employee group life insurance or 
60.9 	health benefits program;
60.10 	(5) (4) an officer or employee of the State Capitol Affinity Plus Federal Credit Union 
60.11 	or the Highway Credit Union; and
60.12 	(6) (5) an employee of the joint underwriting association pursuant to section 62I.121 or 
60.13 	Minnesota FAIR plan pursuant to section 65A.35, subdivision 5, unless the commissioner 
60.14 	determines that making these employees eligible to purchase this coverage would cause the 
60.15 	state employee group insurance program to lose its status as a governmental plan or would 
60.16 	cause the program to be treated as a multiemployer welfare arrangement.

60.17 	Sec. 24. Minnesota Statutes 2024, section 43A.33, subdivision 3, is amended to read:
60.18 		Subd. 3.Procedures. (a) Procedures for discipline and discharge of employees covered 
60.19 	by collective bargaining agreements shall be governed by the agreements. Procedures for 
60.20 	employees not covered by a collective bargaining agreement shall be governed by this 
60.21 	subdivision and by the commissioner's and managerial plans.
60.22 	(b) For discharge, suspension without pay or demotion, no later than the effective date 
60.23 	of such action, a permanent classified employee not covered by a collective bargaining 
60.24 	agreement shall be given written notice by the appointing authority. The content of that 
60.25 	notice as well as the employee's right to reply to the appointing authority shall be as 
60.26 	prescribed in the grievance procedure contained in the applicable plan established pursuant 
60.27 	to section 43A.18. The notice shall also include a statement that the employee may elect to 
60.28 	appeal the action to the Bureau of Mediation Services within 30 calendar days following 
60.29 	the effective date of the disciplinary action. A copy of the notice and the employee's reply, 
60.30 	if any, shall be filed by the appointing authority with the commissioner no later than ten 
60.31 	calendar days following the effective date of the disciplinary action. The commissioner 
60.32 	shall have final authority to decide whether the appointing authority shall settle the dispute 
60.33 	prior to the hearing provided under this subdivision 4.
61.1 	(c) For discharge, suspension, or demotion of an employee serving an initial probationary 
61.2 	period, and for noncertification in any subsequent probationary period, grievance procedures 
61.3 	shall be as provided in the plan established pursuant to section 43A.18.
61.4 	(d) Within ten days of receipt of the employee's written notice of appeal, the commissioner 
61.5 	of the Bureau of Mediation Services shall provide both parties with a list of potential 
61.6 	arbitrators according to the rules of the Bureau of Mediation Services to hear the appeal. 
61.7 	The process of selecting the arbitrator from the list shall be determined by the plan.The 
61.8 	hearing shall be conducted pursuant to the rules of the Bureau of Mediation Services. If the 
61.9 	arbitrator finds, based on the hearing record, that the action appealed was not taken by the 
61.10 	appointing authority for just cause, the employee shall be reinstated to the position, or an 
61.11 	equal position in another division within the same agency, without loss of pay. If the arbitrator 
61.12 	finds that there exists sufficient grounds for institution of the appointing authority's action 
61.13 	but the hearing record establishes extenuating circumstances, the arbitrator may reinstate 
61.14 	the employee, with full, partial, or no pay, or may modify the appointing authority's action. 
61.15 	The appointing authority shall bear the costs of the arbitrator for hearings provided for in 
61.16 	this section.

61.17 	Sec. 25. Minnesota Statutes 2024, section 43A.346, subdivision 2, is amended to read:
61.18 		Subd. 2.Eligibility. (a) This section applies to a terminated state employee who:
61.19 	(1) for at least the five years immediately preceding separation under clause clauses (2)
61.20 	and (3), was regularly scheduled to work 1,044 or more hours per year in a position covered 
61.21 	by a pension plan administered by the Minnesota State Retirement System or the Public 
61.22 	Employees Retirement Association;
61.23 	(2) terminated state or Metropolitan Council employment;
61.24 	(3) at the time of termination under clause (2), met the age and service requirements 
61.25 	necessary to receive an unreduced retirement annuity from the plan and satisfied requirements 
61.26 	for the commencement of the retirement annuity or, for a terminated employee under the 
61.27 	unclassified employees retirement plan, met the age and service requirements necessary to 
61.28 	receive an unreduced retirement annuity from the plan and satisfied requirements for the 
61.29 	commencement of the retirement annuity or elected a lump-sum payment; and
61.30 	(4) agrees to accept a postretirement option position with the same or a different 
61.31 	appointing authority, working a reduced schedule that is both (i) a reduction of at least 25 
61.32 	percent from the employee's number of previously regularly scheduled work hours; and (ii) 
61.33 	1,044 hours or less in state or Metropolitan Council service.
62.1 	(b) For purposes of this section, an unreduced retirement annuity includes a retirement 
62.2 	annuity computed under a provision of law which permits retirement, without application 
62.3 	of an earlier retirement reduction factor, whenever age plus years of allowable service total 
62.4 	at least 90.
62.5 	(c) For purposes of this section, as it applies to state employees who are members of the 
62.6 	Public Employees Retirement Association who are at least age 62, the length of separation 
62.7 	requirement and termination of service requirement prohibiting return to work agreements 
62.8 	under section 353.01, subdivisions 11a and 28, are not applicable.

62.9 	Sec. 26. Minnesota Statutes 2024, section 43A.346, subdivision 6, is amended to read:
62.10 		Subd. 6.Duration. Postretirement option employment is for an initial period not to 
62.11 	exceed one year. During that period, the appointing authority may not modify the conditions 
62.12 	of employment specified in the written offer without the person's consent, except as required 
62.13 	by law or by the collective bargaining agreement or compensation plan applicable to the 
62.14 	person. At the end of the initial period, the appointing authority has sole discretion to 
62.15 	determine if the offer of a postretirement option position will be renewed, renewed with 
62.16 	modifications, or terminated. Postretirement option employment may be renewed for periods 
62.17 	of up to one year, not to exceed a total duration of five years. No person may be employed 
62.18 	in one or a combination of postretirement option positions under this section for a total of 
62.19 	more than five years.

62.20 	Sec. 27. Minnesota Statutes 2024, section 43A.36, subdivision 1, is amended to read:
62.21 		Subdivision 1.Cooperation; state agencies. (a) The commissioner may delegate 
62.22 	administrative functions associated with the duties of the commissioner to appointing 
62.23 	authorities who have the capability to perform such functions when the commissioner 
62.24 	determines that it is in the best interests of the state civil service. The commissioner shall 
62.25 	consult with agencies and agencies shall cooperate as appropriate in implementation of this 
62.26 	chapter.
62.27 	(b) The commissioner, in conjunction with appointing authorities, shall analyze and 
62.28 	assess current and future human resource requirements of the civil service and coordinate 
62.29 	personnel actions throughout the civil service to meet the requirements. The commissioner 
62.30 	shall provide recruiting assistance and make the applicant database available to appointing 
62.31 	authorities to use in making appointments to positions in the unclassified service.
62.32 	(c) The head of each agency in the executive branch shall designate an agency personnel 
62.33 	officer. The agency personnel officer shall be accountable to the agency head for all personnel 
63.1 	functions prescribed by laws, rules, collective bargaining agreements, the commissioner 
63.2 	and the agency head. Except when otherwise prescribed by the agency head in a specific 
63.3 	instance, the personnel officer shall be assumed to be the authority accountable to the agency 
63.4 	head over any other officer or employee in the agency for personnel functions.
63.5 	(d) The head of each agency in the executive branch shall designate an affirmative action 
63.6 	officer who shall have primary responsibility for the administration of the agency's 
63.7 	affirmative action plan. The officer shall report directly to the head of the agency on 
63.8 	affirmative action matters.
63.9 	(e) Pursuant to section 43A.431, the head of each agency in the executive branch shall 
63.10 	designate an ADA coordinator who shall have primary responsibility for the administration 
63.11 	of ADA policies, procedures, trainings, requests, and arbitration. The coordinator shall 
63.12 	report directly to the commissioner agency head.

63.13 	Sec. 28. Minnesota Statutes 2024, section 43A.421, is amended to read:
63.14 	43A.421 SUPPORTED WORKCUSTOMIZED EMPLOYMENT PROGRAM.
63.15 		Subdivision 1.Program established. Active positions within agencies of state 
63.16 	government may be selected for inclusion for a supported work program for persons with 
63.17 	significant disabilities. A full-time position may be shared by up to three persons with 
63.18 	significant disabilities and their job coach. The job coach is not a state employee within the 
63.19 	scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14, unless the job coach 
63.20 	holds another position within the scope of section 43A.02, subdivision 21, or 179A.03, 
63.21 	subdivision 14. All classified supported work job postings need to link to the overview and 
63.22 	application process for the supported work program. The commissioner is responsible for 
63.23 	the establishment, administration, and oversight of a program providing customized 
63.24 	employment opportunities for individuals with significant disabilities as defined in United 
63.25 	States Code, title 29, section 705(21). Employees in the customized employment program 
63.26 	are appointed to a customized employment position by matching the skills offered by eligible 
63.27 	individuals to specific tasks and projects within agencies, rather than to an existing job 
63.28 	classification. When job coach services are necessary for the individuals employed through 
63.29 	this program, the job coach is not a state employee within the scope of section 43A.02, 
63.30 	subdivision 21, or 179A.03, subdivision 14, unless the job coach holds another position 
63.31 	within the scope of section 43A.02, subdivision 21, or 179A.03, subdivision 14.
63.32 		Subd. 2.Responsibilities Customized employment. (a) The commissioner is responsible 
63.33 	for the administration and oversight of the supported work customized employment program, 
64.1 	including the establishment of policies and procedures, eligibility, data collection and 
64.2 	reporting requirements, and compliance.
64.3 	(b) The commissioner or the commissioner's designee shall design and implement a 
64.4 	training curriculum for the supported work customized employment program. All executive 
64.5 	leaders, managers, supervisors, human resources professionals, affirmative action officers, 
64.6 	and Americans with Disabilities Act coordinators must receive annual training regarding 
64.7 	the program.
64.8 	(c) The commissioner or the commissioner's designee shall develop, administer, and 
64.9 	make public a formal grievance process for individuals in the program.

64.10 	Sec. 29. REPEALER.
 64.11 	Minnesota Statutes 2024, sections 43A.315; 43A.317, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 
64.12 	10, and 12; and 43A.318, subdivisions 1, 2, 4, and 5, are repealed.

64.13 	ARTICLE 4
64.14 	LICENSING BOARDS

64.15 	Section 1. Minnesota Statutes 2024, section 155A.23, is amended by adding a subdivision 
64.16 	to read:
64.17 		Subd. 22.Textured hair. "Textured hair" is hair that is coiled, curly, or wavy.

64.18 	Sec. 2. Minnesota Statutes 2024, section 155A.27, subdivision 2, is amended to read:
64.19 		Subd. 2.Qualifications. (a) Qualifications for licensing in each classification shall be 
64.20 	determined by the board and established by rule, and shall include educational and 
64.21 	experiential prerequisites.
64.22 	(b) A person applying for an individual license to practice as a cosmetologist, hair 
64.23 	technician, manager, or instructor must: (1) successfully complete training on the properties 
64.24 	of the hair and all hair types and textures, including coil, curl, or wave patterns, hair strand 
64.25 	thicknesses, and volumes of hair; and (2) have experience providing services to individuals 
64.26 	with hair of all types and textures, including coil, curl, or wave patterns, hair strand 
64.27 	thicknesses, and volumes of hair.
64.28 	(c) (b) The rules shall require a demonstrated knowledge of procedures necessary to 
64.29 	protect the health and safety of the practitioner and the consumer of cosmetology services, 
64.30 	including but not limited to infection control, use of implements, apparatuses and other 
64.31 	appliances, and the use of chemicals.

65.1 	Sec. 3. Minnesota Statutes 2024, section 155A.2705, subdivision 3, is amended to read:
65.2 		Subd. 3.Training. Hair technician training must be completed at a Minnesota-licensed 
65.3 	cosmetology school. The training must consist of 900 hours of coursework and planned 
65.4 	clinical instruction and experience that includes:
65.5 	(1) the first 300 hours of the hair technology course that includes:
65.6 	(i) student orientation;
65.7 	(ii) preclinical instruction in the theory of sciences, including:
65.8 	(A) muscle and bone structure and function;
65.9 	(B) properties of the hair, a study of all hair types and textures, including coil, curl, or 
65.10 	wave patterns, hair strand thicknesses, and volumes of hair, and scalp;
65.11 	(C) disorders and diseases of the hair and scalp;
65.12 	(D) chemistry as related to hair technology; and
65.13 	(E) electricity and light related to the practice of hair technology;
65.14 	(iii) theory and preclinical instruction on client and service safety prior to students 
65.15 	offering services;
65.16 	(iv) introductory service skills that are limited to the observation of an instructor 
65.17 	demonstration, student use of mannequins, or student-to-student application of basic services 
65.18 	related to hair technology;
65.19 	(v) Minnesota statutes and rules pertaining to the regulation of hair technology;
65.20 	(vi) health and safety instruction that includes:
65.21 	(A) chemical safety;
65.22 	(B) safety data sheets;
65.23 	(C) personal protective equipment (PPE);
65.24 	(D) hazardous substances; and
65.25 	(E) laws and regulations related to health and public safety; and
65.26 	(vii) infection control to protect the health and safety of the public and technician that 
65.27 	includes:
65.28 	(A) disinfectants;
65.29 	(B) disinfectant procedures;
66.1 	(C) cleaning and disinfection;
66.2 	(D) single use items;
66.3 	(E) storage of tools, implements, and linens; and
66.4 	(F) other implements and equipment used in salons and schools;
66.5 	(2) 300 hours in hair cutting and styling that includes hair and scalp analysis; providing 
66.6 	services to individuals who have all hair types and textures, including coil, curl, or wave 
66.7 	patterns, hair strand thicknesses, and volumes of hair; cleaning;, scalp and hair conditioning;,
66.8 	hair design and shaping;, drying;, arranging;, curling;, dressing;, waving;, and nonchemical 
66.9 	straightening; and
66.10 	(3) 300 hours in chemical hair services that includes hair and scalp analysis; providing 
66.11 	services to individuals with all hair types and textures, including coil, curl, or wave patterns, 
66.12 	hair strand thicknesses, and volumes of hair;, dying;, bleaching;, reactive chemicals;, keratin;,
66.13 	hair coloring;, permanent straightening;, permanent waving;, predisposition and strand 
66.14 	tests;, safety precautions;, chemical mixing;, color formulation;, and the use of dye removers.

66.15 	Sec. 4. Minnesota Statutes 2024, section 155A.30, subdivision 2, is amended to read:
66.16 		Subd. 2.Standards. (a) Cosmetologist and hair technician course content must include 
66.17 	textured hair training that consists of theoretical and clinical instruction on working with 
66.18 	hair with various:
66.19 	(1) curl, coil, and wave patterns;
66.20 	(2) hair strand thicknesses; and
66.21 	(3) volumes.
66.22 	(b) The board shall by rule establish minimum standards of course content and length 
66.23 	specific to the educational preparation prerequisite to testing and licensing as cosmetologist, 
66.24 	esthetician, and nail technician.

66.25 	Sec. 5. Minnesota Statutes 2024, section 326.05, is amended to read:
66.26 	326.05 QUALIFICATIONS OF BOARD MEMBERS.
66.27 	Each member of the board shall must be a resident of this state at the time of and 
66.28 	throughout the member's appointment. Each member except the public members shall must
66.29 	have been engaged in the practice of the relevant profession for at least ten five years and 
66.30 	shall have been in responsible charge of professional work requiring licensure as an architect, 
67.1 	engineer, land surveyor, landscape architect, or geoscientist, or certification as an interior 
67.2 	designer for at least five two years.

67.3 	Sec. 6. Minnesota Statutes 2024, section 326.10, subdivision 1, is amended to read:
67.4 		Subdivision 1.Issuance.  The board shall on application therefor on a prescribed form, 
67.5 	and upon payment of a fee prescribed by rule of the board, issue a license or certificate as 
67.6 	an architect, engineer, land surveyor, landscape architect, geoscientist, or certified interior 
67.7 	designer. A separate fee shall be paid for each profession licensed.
67.8 	(1) To any person over 25 years of age, who is of good moral character and repute, who 
67.9 	complies with the Rules of Professional Conduct established in rules by the board and who 
67.10 	has the experience and educational qualifications which that the board by rule may prescribe.
67.11 	(2) To any person who holds an unexpired certificate of registration or license issued 
67.12 	by proper authority in the District of Columbia, any state or territory of the United States, 
67.13 	or any foreign country, in which the requirements for registration or licensure of architects, 
67.14 	engineers, land surveyors, landscape architects, geoscientists, or certified interior designers, 
67.15 	respectively, at the time of registration or licensure in the other jurisdiction, were equal, in 
67.16 	the opinion of the board, substantially equivalent as established in rules by the board to 
67.17 	those fixed by the board and by the laws of this state, and in which similar privileges are 
67.18 	extended to the holders of certificates of registration or licensure issued by this state. The 
67.19 	board may require such person to submit a certificate of technical qualification from the 
67.20 	National Council of Architectural Registration Boards in the case of an architect, from the 
67.21 	National Council of Examiners for Engineering and Surveying in the case of an engineer, 
67.22 	from the Council of Landscape Architectural Registration Boards in the case of a landscape 
67.23 	architect, and from the National Council for Interior Design Qualification in the case of a 
67.24 	certified interior designer.

67.25 	Sec. 7. Minnesota Statutes 2024, section 326.10, subdivision 2, is amended to read:
67.26 		Subd. 2.Examination. The board, or a committee of the board, may subject any applicant 
67.27 	for licensure or certification to such examinations as may be deemed necessary to establish 
67.28 	qualifications.
67.29 	In determining the qualifications of applicants, at least one member determining the 
67.30 	qualifications must be licensed or certified in the same profession as that being evaluated.
67.31 	An applicant for licensure or certification must provide evidence of passing the required 
67.32 	examinations as prescribed by the board in rules.

68.1 	Sec. 8. Minnesota Statutes 2024, section 326.10, subdivision 10, is amended to read:
68.2 		Subd. 10.Temporary military license. The board shall establish a temporary license 
68.3 	in accordance with section 197.4552 for the practice of architecture, professional engineering, 
68.4 	geosciences, land surveying, landscape architecture, and interior design. The fee for the 
68.5 	temporary license under this subdivision for the practice of architecture, professional 
68.6 	engineering, geosciences, land surveying, landscape architecture, or interior design is $132
68.7 	$0.

68.8 	Sec. 9. Minnesota Statutes 2024, section 326.111, subdivision 3, is amended to read:
68.9 		Subd. 3.Cease and desist orders. (a) The board, or the complaint committee if 
68.10 	authorized by the board, may issue and have served upon a person an order requiring the 
68.11 	person to cease and desist from the unauthorized practice of architecture, engineering, land 
68.12 	surveying, landscape architecture, geoscience, or the unauthorized use of the titles architect, 
68.13 	professional engineer, land surveyor, landscape architect, professional geologist, professional 
68.14 	soil scientist, certified interior designer, or violation of the statute, rule, or order. The order 
68.15 	shall be calculated to give reasonable notice of the rights of the person to request a hearing 
68.16 	and shall state the reasons for the entry of the order.
68.17 	(b) Service of the order is effective if the order is served on the person or counsel of 
68.18 	record personally or by certified mail to the most recent address provided to the board for 
68.19 	the person or counsel of record. Service of the order must be by first class United States 
68.20 	mail, including certified United States mail, or overnight express mail service with the 
68.21 	postage prepaid and addressed to the party at the party's last known address. Service by 
68.22 	United States mail, including certified mail, is complete upon placing the order in the mail 
68.23 	or otherwise delivering the order to the United States mail service. Service by overnight 
68.24 	express mail service is complete upon delivering the order to an authorized agent of the 
68.25 	express mail service.
68.26 	(c) Unless otherwise agreed by the board, or the complaint committee if authorized by 
68.27 	the board, and the person requesting the hearing, the hearing shall be held no later than 30 
68.28 	days after the request for the hearing is received by the board.
68.29 	(d) The administrative law judge shall issue a report within 30 days of the close of the 
68.30 	contested case hearing record, notwithstanding Minnesota Rules, part 1400.8100, subpart 
68.31 	3. Within 30 days after receiving the report and any exceptions to it, the board shall issue 
68.32 	a further order vacating, modifying, or making permanent the cease and desist orders as the 
68.33 	facts require.
69.1 	(e) If no hearing is requested within 30 days of service of the order, the order becomes 
69.2 	final and remains in effect until it is modified or vacated by the board.
69.3 	(f) If the person to whom a cease and desist order is issued fails to appear at the hearing 
69.4 	after being duly notified, the person is in default and the proceeding may be determined 
69.5 	against that person upon consideration of the cease and desist order, the allegations of which 
69.6 	may be considered to be true.

69.7 	Sec. 10. Minnesota Statutes 2024, section 326.111, subdivision 4, is amended to read:
69.8 		Subd. 4.Actions against applicants and licensees. (a) The board may, by order, deny, 
69.9 	refuse to renew, suspend, temporarily suspend, or revoke the application, license, or 
69.10 	certification of a person; censure or reprimand that person; condition or limit the person's 
69.11 	practice; refuse to permit a person to sit for examination; or refuse to release the person's 
69.12 	examination grades if the board finds that the order is in the public interest and the applicant, 
69.13 	licensee, or certificate holder:
69.14 	(1) has violated a statute, rule, or order that the board has issued or is empowered to 
69.15 	enforce;
69.16 	(2) has engaged in conduct or acts that are fraudulent, deceptive, or dishonest whether 
69.17 	or not the conduct or acts relate to the practice of architecture, engineering, land surveying, 
69.18 	landscape architecture, geoscience, or certified interior design, providing that the fraudulent, 
69.19 	deceptive, or dishonest conduct or acts reflect adversely on the person's ability or fitness to 
69.20 	engage in the practice of architecture, engineering, land surveying, landscape architecture, 
69.21 	geoscience, or certified interior design;
69.22 	(3) has engaged in conduct or acts that are negligent or otherwise in violation of the 
69.23 	standards established by Minnesota Rules, chapters 1800 and 1805, where the conduct or 
69.24 	acts relate to the practice of architecture, engineering, land surveying, landscape architecture, 
69.25 	geoscience, or use of the title certified interior designer;
69.26 	(4) has been convicted of or has pled guilty or nolo contendere to a felony, an element 
69.27 	of which is dishonesty or fraud, whether or not the person admits guilt, or has been shown 
69.28 	to have engaged in acts or practices tending to show that the applicant or licensee is 
69.29 	incompetent or has engaged in conduct reflecting adversely on the person's ability or fitness 
69.30 	to engage in the practice of architecture, engineering, land surveying, landscape architecture, 
69.31 	geoscience, or use of the title certified interior designer;
69.32 	(5) employed fraud or deception in obtaining a certificate, license, renewal, or 
69.33 	reinstatement or in passing all or a portion of the examination;
70.1 	(6) has had the person's architecture, engineering, land surveying, landscape architecture, 
70.2 	geoscience, or interior design license, certificate, right to examine, or other similar authority 
70.3 	revoked, suspended, canceled, limited, or not renewed for cause in any state, commonwealth, 
70.4 	or territory of the United States, in the District of Columbia, or in any foreign country;
70.5 	(7) has had the person's right to practice before any federal, state, or other government 
70.6 	agency revoked, suspended, canceled, limited, or not renewed;
70.7 	(8) failed to meet any requirement for the issuance or renewal of the person's license or 
70.8 	certificate;
70.9 	(9) has attached the person's seal or signature to a plan, specification, report, plat, or 
70.10 	other architectural, engineering, land surveying, landscape architectural, geoscientific, or 
70.11 	interior design document not prepared by the person sealing or signing it or under that 
70.12 	person's direct supervision; or
70.13 	(10) with respect to temporary suspension orders, has committed an act, engaged in 
70.14 	conduct, or committed practices that may, or has in the opinion of the board, or the complaint 
70.15 	committee if authorized by the board, resulted in an immediate threat to the public.
70.16 	(b) In lieu of or in addition to any remedy provided in paragraph (a), the board may 
70.17 	require, as a condition of continued licensure, possession of certificate, termination of 
70.18 	suspension, reinstatement of license or certificate, examination, or release of examination 
70.19 	grades, that the person:
70.20 	(1) submit to a quality review of the person's ability, skills, or quality of work, conducted 
70.21 	in such fashion and by such persons, entity, or entities as the board may require including, 
70.22 	but not limited to, remedial education courses; and
70.23 	(2) complete to the satisfaction of the board such continuing professional education 
70.24 	courses as the board may specify by rule.
70.25 	(c) Service of the order is effective if the order is served on the licensee, certificate 
70.26 	holder, applicant, person, or counsel of record personally or by certified mail, to the most 
70.27 	recent address provided to the board for the licensee, certificate holder, applicant, person, 
70.28 	or counsel of record. must be by first class United States mail, including certified United 
70.29 	States mail, or overnight express mail service with the postage prepaid and addressed to the 
70.30 	party at the party's last known address. Service by United States mail, including certified 
70.31 	mail, is complete upon placing the order in the mail or otherwise delivering the order to the 
70.32 	United States mail service. Service by overnight express mail service is complete upon 
71.1 	delivering the order to an authorized agent of the express mail service. The order shall state 
71.2 	the reasons for the entry of the order.
71.3 	(d) All hearings required by this section shall be conducted in accordance with chapter 
71.4 	14, except with respect to temporary suspension orders, as provided for in subdivision 5, 
71.5 	paragraph (d).

71.6 	Sec. 11. Minnesota Statutes 2024, section 326.111, subdivision 5, is amended to read:
71.7 		Subd. 5.Procedure for temporary suspension of license or certificate. (a) When the 
71.8 	board, or the complaint committee if authorized by the board, issues a temporary suspension 
71.9 	order, the suspension is in effect upon service of a written order on the licensee or counsel 
71.10 	of record, specifying the statute, rule, or order violated. The order remains in effect until 
71.11 	the board issues a final order in the matter after a hearing or upon agreement between the 
71.12 	board and the licensee.
71.13 	(b) Service of the order is effective if the order is served on the licensee or counsel of 
71.14 	record personally or by certified mail, to the most recent address provided to the board for 
71.15 	the licensee or counsel of record. must be by first class United States mail, including certified 
71.16 	United States mail, or overnight express mail service with postage prepaid and addressed 
71.17 	to the party at the party's last known address. Service by United States mail, including 
71.18 	certified mail, is complete upon placing the order in the mail or otherwise delivering the 
71.19 	order to the United States mail service. Service by overnight express mail service is complete 
71.20 	upon delivering the order to an authorized agent of the express mail service.
71.21 	(c) The order shall set forth the rights to a hearing contained in this subdivision and shall 
71.22 	state the reasons for the entry of the order.
71.23 	(d) Within ten days after service of the order, the licensee may request a hearing in 
71.24 	writing. The board shall hold a hearing before its own members within five working days 
71.25 	of receipt of a request for hearing on the sole issue of whether there is a reasonable basis 
71.26 	to continue, modify, or lift the temporary suspension. This hearing is not subject to chapter 
71.27 	14. Evidence presented by the board or the licensee shall be in affidavit form only. The 
71.28 	licensee or counsel of record may appear for oral argument.
71.29 	(e) Within five working days after the hearing, the board shall issue its order and, if the 
71.30 	suspension is continued, schedule a contested case hearing within 30 days after issuance of 
71.31 	the order. The administrative law judge shall issue a report within 30 days after closing of 
71.32 	the contested case hearing record, notwithstanding the provisions of Minnesota Rules, part 
72.1 	1400.8100, subpart 3. The board shall issue a final order within 30 days after receipt of that 
72.2 	report and any exceptions to it.

72.3 	Sec. 12. Minnesota Statutes 2024, section 326.111, is amended by adding a subdivision 
72.4 	to read:
72.5 		Subd. 8.Actions against a person with a lapsed license or certificate. If a person's 
72.6 	license or certificate lapses; is surrendered, withdrawn, or terminated; or otherwise becomes 
72.7 	ineffective, the board may institute a proceeding against the person under this subdivision 
72.8 	within two years after the license or certificate was last effective and enter a revocation or 
72.9 	suspension order as of the last date on which the license or certificate was in effect or impose 
72.10 	a civil penalty as provided in subdivision 6.

72.11 	Sec. 13. Minnesota Statutes 2024, section 326A.03, subdivision 6, is amended to read:
72.12 		Subd. 6.Certificate; required education and experience until July 1, 2030. (a) On 
72.13 	or after July 1, 2006, and before July 1, 2030, a person who has passed the examination 
72.14 	required in this section must be granted a certificate as a certified public accountant provided: 
72.15 	(1) the person certifies to the board that the person has completed at least 150 semester or 
72.16 	225 quarter hours at a college or university that is fully accredited by a recognized accrediting 
72.17 	agency listed with the United States Department of Education, or an equivalent accrediting 
72.18 	association, and has completed at least one year of experience of the type specified in 
72.19 	paragraph (b); (2) the board verifies the certifications; and (3) the person complies with 
72.20 	requirements for initial issuance of the certificate as a certified public accountant as 
72.21 	prescribed by the board by rule.
72.22 	(b) An applicant for initial issuance of a certificate under this subdivision shall show 
72.23 	that the applicant has had one year of experience. Acceptable experience includes providing 
72.24 	any type of service or advice involving the use of accounting, attest, compilation, 
72.25 	management advisory, financial advisory, tax, or consulting skills, as verified by a licensee 
72.26 	and meeting requirements prescribed by the board by rule. Acceptable experience may be 
72.27 	gained through employment in government, industry, academia, or public practice. 
72.28 	Experience as an auditor in the Office of the Legislative Auditor or State Auditor, as verified 
72.29 	by a licensee, shall be acceptable experience.
72.30 	(c) This subdivision expires July 1, 2030.

73.1 	Sec. 14. Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision 
73.2 	to read:
73.3 		Subd. 6a.Certificate; required education and experience after June 30, 2030. (a) 
73.4 	On and after July 1, 2030, or during the transitional period as provided in subdivision 6b, 
73.5 	the board must grant a certificate as a certified public accountant to a person who has not 
73.6 	previously been certified and who has passed the examination required in this section if:
73.7 	(1) the person certifies to the board that the person:
73.8 	(i) has completed a master's degree at a college or university that is fully accredited by 
73.9 	a recognized accrediting agency listed with the United States Department of Education and 
73.10 	has completed at least one year of acceptable experience described in paragraph (b); or
73.11 	(ii) has earned a bachelor's or graduate degree from a college or university that is fully 
73.12 	accredited by a recognized accrediting agency listed with the United States Department of 
73.13 	Education and has completed at least two years of acceptable experience described in 
73.14 	paragraph (b);
73.15 	(2) the board verifies the certification under clause (1); and
73.16 	(3) the person complies with requirements as prescribed by the board for an initial 
73.17 	certificate.
73.18 	(b) Acceptable experience includes providing any type of service or advice that involves 
73.19 	accounting, attestation, compilation, management advisement, financial advisement, tax, 
73.20 	or consulting skills, as verified by a licensee and meeting requirements prescribed by the 
73.21 	board by rule. Acceptable experience may be gained through employment in government, 
73.22 	industry, academia, or public practice. Experience as an auditor in the Office of the 
73.23 	Legislative Auditor or the Office of the State Auditor, as verified by a licensee, is acceptable 
73.24 	experience.

73.25 	Sec. 15. Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision 
73.26 	to read:
73.27 		Subd. 6b.Transitional period. (a) Until July 1, 2030, a person must be granted an initial 
73.28 	certificate as a certified public accountant if the person meets either:
73.29 	(1) all requirements under subdivision 6; or
73.30 	(2) all requirements under subdivision 6a.
73.31 	(b) This subdivision expires July 1, 2030.

74.1 	EFFECTIVE DATE. This section is effective January 1, 2026.

74.2 	Sec. 16. Minnesota Statutes 2024, section 326A.14, is amended to read:
74.3 	326A.14 SUBSTANTIAL EQUIVALENCY MOBILITY.
74.4 		Subdivision 1.Requirements. (a) An individual whose principal place of business is 
74.5 	not in this state and who holds a valid license in good standing as a certified public accountant 
74.6 	from any state which, upon verification, is in substantial equivalence with the certified 
74.7 	public accountant licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall 
74.8 	be presumed to have qualifications substantially equivalent to this state's requirements and 
74.9 	shall have all the privileges of licensees of this state without the need to obtain a license., 
74.10 	if the person:
74.11 	(1) holds a valid certificate, license, or permit to practice as a certified public accountant 
74.12 	that was issued in another state and is in good standing to practice as a certified public 
74.13 	accountant in that state;
74.14 	(2) has a bachelor's degree or higher from an accredited postsecondary school with an 
74.15 	accounting concentration or equivalent as determined by the board by rule; and
74.16 	(3) has passed the Uniform CPA Examination.
74.17 	(b) Notwithstanding any contrary provision of this chapter, an individual who offers or 
74.18 	renders professional services, whether in person, by mail, telephone, or electronic means, 
74.19 	under this paragraph (a): (1) shall be granted practice privileges in this state; (2) is subject 
74.20 	to the requirements in paragraph (c); and (3) is not required to provide any notice or other 
74.21 	submission.
74.22 	(b) An individual whose principal place of business is not in this state and who holds a 
74.23 	valid license in good standing as a certified public accountant from any state whose certified 
74.24 	public accountant licensure qualifications, upon verification, are not substantially equivalent 
74.25 	with the licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall be 
74.26 	presumed to have qualifications substantially equivalent to this state's requirements and 
74.27 	shall have all the privileges of licensees of this state without the need to obtain a license if 
74.28 	the individual obtains verification, as specified in board rule, that the individual's 
74.29 	qualifications are substantially equivalent to the licensure requirements of section 326A.03, 
74.30 	subdivisions 3, 4, and 6. For purposes of this paragraph, any individual who passed the 
74.31 	Uniform CPA Examination and holds a valid license issued by any other state prior to 
74.32 	January 1, 2009, is exempt from the education requirement in section 326A.03, subdivision 
74.33 	6, paragraph (a), provided the individual meets the education requirement in section 326A.03, 
75.1 	subdivision 3. Notwithstanding any contrary provision of this chapter, an individual who 
75.2 	offers or renders professional services, whether in person, by mail, telephone, or electronic 
75.3 	means, under this paragraph: (1) shall, after the verification specified by adopted rules, be 
75.4 	granted practice privileges in this state; (2) is subject to the requirements in paragraph (c); 
75.5 	and (3) is not required to provide any notice or other submission.
75.6 	(c) An individual licensee of another state exercising the privilege afforded under this 
75.7 	section and the firm which employs that licensee are deemed to have consented, as a condition 
75.8 	of the grant of this privilege:
75.9 	(1) to the personal and subject matter jurisdiction and disciplinary authority of the board;
75.10 	(2) to comply with this chapter and the board's rules;
75.11 	(3) to the appointment of the state board that issued the license as the licensee's agent 
75.12 	upon whom process may be served in any action or proceeding by this board against the 
75.13 	licensee; and
75.14 	(4) to cease offering or rendering professional services in this state individually and on 
75.15 	behalf of a firm in the event the license issued by the state of the individual's principal place 
75.16 	of business is no longer valid or in good standing.
75.17 	(d) An individual who has been granted practice privileges under this section who 
75.18 	performs attest services as defined in section 326A.01, subdivision 2, clause (1), (4), or (5), 
75.19 	for any entity with its headquarters in this state, may only do so through a firm which has 
75.20 	obtained a permit under section 326A.05.
75.21 		Subd. 2.Use of title in another state. A licensee of this state offering or rendering 
75.22 	services or using the CPA title in another state is subject to the same disciplinary action in 
75.23 	this state for which the licensee would be subject to discipline for an act committed in the 
75.24 	other state. The board shall investigate any complaint made by the board of accountancy 
75.25 	of another state.

75.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

75.27 	Sec. 17. REPEALER.
 75.28 		Subdivision 1.Board of Accountancy.  Minnesota Rules, part 1105.7900, item D, is 
75.29 	repealed.
75.30 		Subd. 2.Board of Cosmetologist Examiners. Laws 2024, chapter 120, article 3, section 
75.31 	2, is repealed.

75.32 	EFFECTIVE DATE. Subdivision 1 is effective the day following final enactment.

76.1 	ARTICLE 5
76.2 	MINNESOTA BUSINESS FILING FRAUD PREVENTION ACT

76.3 	Section 1. Minnesota Statutes 2024, section 13.485, subdivision 1, is amended to read:
76.4 		Subdivision 1.Scope. The sections referred to in subdivisions 3 to 6 7 are codified 
76.5 	outside this chapter. Those sections classify corporation data as other than public, place 
76.6 	restrictions on access to government data, or involve data sharing.

76.7 	Sec. 2. Minnesota Statutes 2024, section 13.485, is amended by adding a subdivision to 
76.8 	read:
76.9 		Subd. 7.Business fraud investigations. Government data related to investigations under 
76.10 	sections 300.70 to 300.78 are governed by section 300.78.

76.11 	Sec. 3. [300.70] CITATION AND DEFINITIONS.
76.12 		Subdivision 1.Citation. Sections 300.70 to 300.78 may be cited as the "Minnesota 
76.13 	Business Filing Fraud Prevention Act."
76.14 		Subd. 2.Definitions. (a) For purposes of sections 300.70 to 300.78, the following terms 
76.15 	have the meanings given.
76.16 	(b) "Complainant" means a person who (1) delivers a declaration of wrongful filing, and 
76.17 	(2) has a connection to the allegedly wrongful filing or the related business.
76.18 	(c) "Filer" means the person who has allegedly made a wrongful filing.
76.19 	(d) "Office" means the Office of the Secretary of State.

76.20 	Sec. 4. [300.71] DECLARATION OF WRONGFUL FILING.
76.21 		Subdivision 1.Form and contents of declaration. (a) A complainant may deliver a 
76.22 	declaration of wrongful filing to the office if the complainant believes that a document filed 
76.23 	under chapters 301 to 323A:
76.24 	(1) was not authorized to be filed; and
76.25 	(2) was filed with the intent to: (i) modify the ownership, registered agent, business 
76.26 	address, contact information, governance, or other information of a business on record; or 
76.27 	(ii) register a business using another person's name, address, or identity.
76.28 	(b) A declaration of wrongful filing must include:
76.29 	(1) the file number of the allegedly wrongful filing;
77.1 	(2) the complainant's name, mailing address, and email address;
77.2 	(3) whether the complainant is employed by or has an ownership interest in the business 
77.3 	that is the subject of the filing;
77.4 	(4) any information or evidence supporting the complainant's allegations under this 
77.5 	section;
77.6 	(5) a statement verifying the complainant believes in good faith that the facts stated in 
77.7 	the declaration are true; and
77.8 	(6) any other information the office deems necessary.
77.9 	(c) The office must provide a form for declarations filed under this section. A complainant 
77.10 	must use the provided form when submitting a declaration of wrongful filing.
77.11 	(d) A false material statement of fact in a declaration of wrongful filing or any other 
77.12 	document submitted under sections 300.70 to 300.78 is a violation of section 609.48.
77.13 		Subd. 2.Review of declaration. (a) The office must promptly accept or reject a 
77.14 	declaration of wrongful filing.
77.15 	(b) The office may reject a declaration of wrongful filing that is incomplete, does not 
77.16 	use the provided form, or the office reasonably believes was delivered with the intent to 
77.17 	harass or defraud the filer. The office may reject a declaration of wrongful filing if the office 
77.18 	has already issued a final order on the filing identified in the declaration.
77.19 		Subd. 3.Nonexclusive remedy. The remedy in sections 300.70 to 300.78 is not exclusive. 
77.20 	An aggrieved party may seek district court action regardless of whether the individual has 
77.21 	initiated or completed the procedure described in these sections.

77.22 	Sec. 5. [300.72] NOTICE.
77.23 	(a) When the office accepts a declaration of wrongful filing, the office must provide 
77.24 	notice of the declaration to the complainant and the filer. The notice must describe the 
77.25 	allegations made in the declaration and the process used to resolve the allegations. The 
77.26 	notice must prominently state the response timeline in section 300.73 and the consequences 
77.27 	if the filer does not respond. The notice must prominently state that a false statement of 
77.28 	material fact in any documents submitted under sections 300.70 to 300.78 is a violation of 
77.29 	section 609.48.
77.30 	(b) The office must send the notice by first class mail, postage prepaid, to:
77.31 	(1) the complainant at the mailing address provided in the declaration; and
78.1 	(2) the filer at:
78.2 	(i) the most recent registered business address associated with the filing named in the 
78.3 	declaration; or
78.4 	(ii) if a mailing address for the filer cannot be identified, the notice may be served on 
78.5 	the filer as provided under section 5.25, subdivision 6.
78.6 	(c) Notice is deemed received by the complainant and the filer upon mailing.
78.7 	(d) If the notice to the filer is returned as undeliverable, the office may deem the filing 
78.8 	fraudulent and immediately issue a final order as provided under section 300.76, 
78.9 	notwithstanding the time period under section 300.73.

78.10 	Sec. 6. [300.73] RESPONSE.
78.11 	(a) After notice is received, the filer must respond in writing to the allegations in the 
78.12 	declaration. The response must be received by the office within 21 calendar days of receipt 
78.13 	of the notice.
78.14 	(b) The filer's response under this section must include any information refuting the 
78.15 	allegations contained in the complainant's declaration.

78.16 	Sec. 7. [300.74] PROCEDURE WHEN NO RESPONSE RECEIVED.
78.17 	If the filer does not respond within the time period under section 300.73, the office must 
78.18 	deem the filing fraudulent and issue a final order as provided under section 300.76.

78.19 	Sec. 8. [300.75] PROCEDURE WHEN RESPONSE RECEIVED.
78.20 		Subdivision 1.Preliminary determination. (a) If the filer responds within the period 
78.21 	under section 300.73, the office must further investigate the allegations in the declaration 
78.22 	and information in the response and make a preliminary determination regarding whether 
78.23 	the filing named in the declaration is fraudulent.
78.24 	(b) The office may request additional information from the complainant and the filer if 
78.25 	necessary to make the preliminary determination.
78.26 		Subd. 2.Notice of preliminary determination. The office must send notice of the 
78.27 	preliminary determination to the complainant and the filer in the manner described under 
78.28 	section 300.72. Notice is deemed received in the manner described under section 300.72.
78.29 		Subd. 3.Response. After notice is received, the nonprevailing party must respond to 
78.30 	the preliminary determination within ten calendar days with additional information or 
79.1 	evidence in support of the nonprevailing party's position. The prevailing party may send 
79.2 	additional information or evidence within the same time period. The response must be 
79.3 	received by the office within the time period provided under this subdivision.
79.4 		Subd. 4.Procedure if no second response is received. If the nonprevailing party does 
79.5 	not respond as required under subdivision 3, the preliminary determination becomes final 
79.6 	and the office must issue a final order under section 300.76.
79.7 		Subd. 5.Procedure if second response is received. If the nonprevailing party responds 
79.8 	as required under subdivision 3, the office must consider the additional information provided, 
79.9 	make a final determination regarding whether the filing named in the declaration is fraudulent, 
79.10 	and issue a final order under section 300.76.
79.11 		Subd. 6.Factors. When making a preliminary or final determination under this section, 
79.12 	the office may consider various factors, including but not limited to:
79.13 	(1) whether the office has previously received declarations of wrongful filing or issued 
79.14 	final orders relating to the business, the filer, or the complainant;
79.15 	(2) the previous filing history relating to the business, the filer, or the complainant;
79.16 	(3) whether the filer or complainant failed to respond to a request for additional 
79.17 	information; and
79.18 	(4) whether the office is able to independently verify the information provided by the 
79.19 	filer or complainant using publicly available information.

79.20 	Sec. 9. [300.76] FINAL ORDER.
79.21 		Subdivision 1.Filings deemed fraudulent. (a) If the office deems a filing fraudulent 
79.22 	under section 300.74 or 300.75, the office must issue a final order under this subdivision. 
79.23 	The final order must provide the office's rationale for deeming the filing fraudulent.
79.24 	(b) When a filing is deemed fraudulent pursuant to a final order under this subdivision, 
79.25 	the filing must be treated for legal purposes as if the filing never existed. In the case of a 
79.26 	business registered using a Minnesota resident's name, address, or identity without the 
79.27 	resident's authorization, the business is deemed dissolved.
79.28 	(c) When a filing is deemed fraudulent pursuant to a final order, the office must:
79.29 	(1) mark the unauthorized filing or the business record as unauthorized or fraudulent;
79.30 	(2) redact names and addresses that were used without authorization; and
79.31 	(3) retain a copy of the final order.
80.1 	(d) In addition to the actions in paragraph (c), the office may:
80.2 	(1) disable additional filing functionality on the business entity's record; or
80.3 	(2) take other action the office deems necessary to prevent further unauthorized filings, 
80.4 	protect private information, or prevent misuse of unauthorized information.
80.5 		Subd. 2.Filings deemed not fraudulent or insufficient evidence. If the office 
80.6 	determines that a filing is not fraudulent or that insufficient information is available to make 
80.7 	a determination, the office must issue a final order stating that the office is not removing 
80.8 	the filing from the database. The final order must provide the office's rationale for 
80.9 	determining that the filing is not fraudulent or that insufficient information is available to 
80.10 	make a determination.

80.11 	Sec. 10. [300.77] JUDICIAL REVIEW.
80.12 	(a) Any party who is aggrieved by a final order under section 300.76 may appeal the 
80.13 	order to the district court of the Minnesota county where the business that is the subject of 
80.14 	the final order is registered or was registered before the business's dissolution or, if the 
80.15 	business is not registered in Minnesota, to the district court of Ramsey County. The aggrieved 
80.16 	party may also appeal the final order as part of any district court action between the filer 
80.17 	and complainant where the filing at issue is relevant to the issues in the case.
80.18 	(b) The aggrieved party must serve a written copy of a notice of appeal upon the office 
80.19 	and any adverse party of record within 30 calendar days after the date the final order was 
80.20 	issued and must also file the original notice and proof of service with the court administrator 
80.21 	of the district court. Service may be made in person or by mail. Service by mail is complete 
80.22 	upon mailing. The court administrator is prohibited from requiring a filing fee for appeals 
80.23 	taken pursuant to this section.
80.24 	(c) The office may elect to become a party to the proceedings in the district court.
80.25 	(d) The court may order that the office furnish the court and all parties to the proceedings 
80.26 	with a copy of the decision, the filing that is the subject of the decision, and any materials 
80.27 	or information submitted to the office. Any materials provided under this section that are 
80.28 	filed with the court must be done so under restricted access unless the court orders otherwise.
80.29 	(e) A party may obtain a hearing at a special term of the district court by serving a written 
80.30 	notice of the hearing's time and place at least ten days before the date of the hearing.
81.1 	(f) A party aggrieved by the order of the district court may appeal the order as in other 
81.2 	civil cases. Costs or disbursements must not be taxed against a party. A filing fee or bond 
81.3 	must not be required of a party.

81.4 	Sec. 11. [300.78] DATA PRACTICES.
81.5 		Subdivision 1.Definitions. For purposes of this section, "nonpublic data" has the meaning 
81.6 	given in section 13.02, subdivision 9, and "private data on individuals" has the meaning 
81.7 	given in section 13.02, subdivision 12.
81.8 		Subd. 2.Data classification. Data submitted by a complainant or filer under sections 
81.9 	300.70 to 300.78 is classified as nonpublic data or private data on individuals. A final order 
81.10 	under section 300.76 is public data, subject to the following: the complainant or filer's 
81.11 	personal contact information is classified as private data on individuals. The unredacted 
81.12 	version of a filing deemed fraudulent pursuant to a final order under section 300.76, 
81.13 	subdivision 1, is classified as nonpublic data or private data on individuals. The version of 
81.14 	the filing that has been redacted pursuant to section 300.76, subdivision 1, paragraph (c), 
81.15 	is classified as public data.
81.16 		Subd. 3.Dissemination permitted. Notwithstanding subdivision 2, the office may 
81.17 	disseminate data of any classification collected, created, or maintained under sections 300.70 
81.18 	to 300.78:
81.19 	(1) to the attorney general to aid the office in the investigation and review of a filing 
81.20 	that is the subject of a declaration of wrongful filing;
81.21 	(2) to a person or agency if the office determines that access to the data aids a criminal 
81.22 	or civil investigation; or
81.23 	(3) if required or authorized by a court order or other state or federal law.

81.24 	Sec. 12. [300.80] PROHIBITION ON DECEPTIVE BUSINESS MAILINGS.
81.25 		Subdivision 1.Definition. For purposes of this section, "solicitation" means a 
81.26 	communication that is sent by a nongovernment third party to a business and that purports 
81.27 	to:
81.28 	(1) notify the business of an operating requirement, including but not limited to filing 
81.29 	documents with or retrieving documents from the Office of the Minnesota Secretary of 
81.30 	State; or
82.1 	(2) offer a service that relates to filing documents with, producing documents for, or 
82.2 	reporting information to the Office of the Minnesota Secretary of State.
82.3 		Subd. 2.Design and content requirements. (a) A solicitation must:
82.4 	(1) include a clear statement indicating that the solicitation is an advertisement and is 
82.5 	not from a government agency. The statement must be placed at the top of a physical 
82.6 	document or the beginning of an electronic communication and must be in at least 24-point 
82.7 	font. All other text in the document must be smaller than the statement required by this 
82.8 	clause;
82.9 	(2) provide information indicating where an individual is able to directly file documents 
82.10 	with the secretary of state or retrieve copies of public records;
82.11 	(3) disclose the name and physical address of the company sending the solicitation. The 
82.12 	physical address must not be a post office box; and
82.13 	(4) for a mailed solicitation, prominently display in capital letters on the envelope or 
82.14 	outer wrapper the words "THIS IS NOT A GOVERNMENT DOCUMENT."
82.15 	(b) The overall design and language of a solicitation must not:
82.16 	(1) create the impression that the solicitation is an official government notice or document;
82.17 	(2) incorporate the Minnesota state seal or other logo or branding of the state or any 
82.18 	state agency; or
82.19 	(3) indicate or imply a legal duty to act on the solicitation or a penalty for failure to act 
82.20 	on the solicitation.
82.21 		Subd. 3.Penalties. (a) A person who sends a solicitation that does not comply with the 
82.22 	requirements of this section is guilty of a misdemeanor.
82.23 	(b) A violation of this section is a violation of sections 325D.43 to 325D.48.

82.24 	Sec. 13. Minnesota Statutes 2024, section 609.48, subdivision 1, is amended to read:
82.25 		Subdivision 1.Acts constituting. Whoever makes a false material statement not believing 
82.26 	it to be true in any of the following cases is guilty of perjury and may be sentenced as 
82.27 	provided in subdivision 4:
82.28 	(1) in or for an action, hearing or proceeding of any kind in which the statement is 
82.29 	required or authorized by law to be made under oath or affirmation;
82.30 	(2) in any writing which is required or authorized by law to be under oath or affirmation;
83.1 	(3) in any writing made according to section 358.115;
83.2 	(4) in any writing made according to section 358.116; or
83.3 	(5) in any writing made according to sections 300.70 to 300.78; or
83.4 	(5) (6) in any other case in which the penalties for perjury are imposed by law and no 
83.5 	specific sentence is otherwise provided.

83.6 	Sec. 14. RULEMAKING.
 83.7 	The secretary of state may adopt rules to carry out the provisions of this act. 
83.8 	Notwithstanding section 14.125, no time limit applies to the authority granted under this 
83.9 	section.

83.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

83.11 	Sec. 15. EFFECTIVE DATE.
 83.12 	Sections 3 to 11 are effective for filings made on or after January 1, 2026.

83.13 	ARTICLE 6
83.14 	BUSINESS FILING FEES

83.15 	Section 1. Minnesota Statutes 2024, section 302A.153, is amended to read:
83.16 	302A.153 EFFECTIVE DATE OF ARTICLES.
83.17 	Articles of incorporation are effective and corporate existence begins when the articles 
83.18 	of incorporation are filed with the secretary of state accompanied by a payment of $135
83.19 	$145, which includes a $100 $110 incorporation fee in addition to the $35 filing fee required 
83.20 	by section 302A.011, subdivision 11. Articles of amendment are effective when filed with 
83.21 	the secretary of state or at another time within 30 days after filing if the articles of amendment 
83.22 	so provide. Articles of merger must be accompanied by a fee of $60, which includes a $25 
83.23 	merger fee in addition to the $35 filing fee required by section 302A.011, subdivision 11.

83.24 	Sec. 2. Minnesota Statutes 2024, section 303.06, is amended by adding a subdivision to 
83.25 	read:
83.26 		Subd. 3.Fees. The fee for filing an application for a certificate of authority with the 
83.27 	secretary of state is $60.

84.1 	Sec. 3. Minnesota Statutes 2024, section 303.21, is amended to read:
84.2 	303.21 FEES.
84.3 		Subd. 3.Other instruments. A fee of $50 shall be paid to the secretary of state for filing 
84.4 	any instrument, other than the application for certificate of authority required by section 
84.5 	303.06 and the annual report renewal required by section 303.14, required or permitted to 
84.6 	be filed under the provisions of this chapter. The fees shall be paid at the time of the filing 
84.7 	of the instrument.

84.8 	Sec. 4. Minnesota Statutes 2024, section 308A.131, subdivision 2, is amended to read:
84.9 		Subd. 2.Filing articles. (a) The original articles must be filed with the secretary of state.
84.10 	(b) The fee for filing the articles with the secretary of state is $60 $65.

84.11 	Sec. 5. Minnesota Statutes 2024, section 308B.215, subdivision 2, is amended to read:
84.12 		Subd. 2.Filing. The original articles shall be filed with the secretary of state. The fee 
84.13 	for filing the articles with the secretary of state is $60 $65.

84.14 	Sec. 6. Minnesota Statutes 2024, section 317A.151, subdivision 2, is amended to read:
84.15 		Subd. 2.Effective date. Articles of incorporation are effective and corporate existence 
84.16 	begins when the articles of incorporation are filed with the secretary of state accompanied 
84.17 	by a payment of $70 $75, which includes a $35 $40 incorporation fee in addition to the $35 
84.18 	filing fee required by section 317A.011, subdivision 8. Articles of amendment are effective 
84.19 	when filed with the secretary of state or at another time within 31 days after filing if the 
84.20 	articles of amendment so provide.

84.21 	Sec. 7. Minnesota Statutes 2024, section 321.0206, is amended to read:
84.22 	321.0206 DELIVERY TO AND FILING OF RECORDS BY SECRETARY OF 
84.23 	STATE; EFFECTIVE TIME AND DATE.
84.24 	(a) A record authorized or required to be delivered to the secretary of state for filing 
84.25 	under this chapter must be captioned to describe the record's purpose, be in a medium 
84.26 	permitted by the secretary of state, and be delivered to the secretary of state. Unless the 
84.27 	secretary of state determines that a record does not comply with the filing requirements of 
84.28 	this chapter, and if the appropriate filing fees have been paid, the secretary of state shall 
84.29 	file the record and:
84.30 	(1) for a statement of dissociation, send:
85.1 	(A) a copy of the filed statement to the person which the statement indicates has 
85.2 	dissociated as a general partner; and
85.3 	(B) a copy of the filed statement to the limited partnership;
85.4 	(2) for a statement of withdrawal, send:
85.5 	(A) a copy of the filed statement to the person on whose behalf the record was filed; and
85.6 	(B) if the statement refers to an existing limited partnership, a copy of the filed statement 
85.7 	to the limited partnership; and
85.8 	(3) for all other records, send a copy of the filed record to the person on whose behalf 
85.9 	the record was filed.
85.10 	(b) Upon request and payment of a fee, the secretary of state shall send to the requester 
85.11 	a certified copy of the requested record.
85.12 	(c) Except as otherwise provided in sections 321.0116 and 321.0207, a record delivered 
85.13 	to the secretary of state for filing under this chapter may specify an effective time and a 
85.14 	delayed effective date. Except as otherwise provided in this chapter, a record filed by the 
85.15 	secretary of state is effective:
85.16 	(1) if the record does not specify an effective time and does not specify a delayed effective 
85.17 	date, on the date and at the time the record is filed as evidenced by the secretary of state's 
85.18 	endorsement of the date and time on the record;
85.19 	(2) if the record specifies an effective time but not a delayed effective date, on the date 
85.20 	the record is filed at the time specified in the record;
85.21 	(3) if the record specifies a delayed effective date but not an effective time, at 12:01 
85.22 	a.m. on the earlier of:
85.23 	(A) the specified date; or
85.24 	(B) the 30th day after the record is filed; or
85.25 	(4) if the record specifies an effective time and a delayed effective date, at the specified 
85.26 	time on the earlier of:
85.27 	(A) the specified date; or
85.28 	(B) the 30th day after the record is filed.
85.29 	(d) The appropriate fees for filings under this chapter are:
85.30 	(1) for filing a certificate of limited partnership, $100 $110;
86.1 	(2) for filing an amended certificate of limited partnership, $50;
86.2 	(3) for filing a name reservation for a limited partnership name, $35;
86.3 	(4) for filing any other record, other than the annual renewal required by section 321.0210, 
86.4 	for which no fee must be charged, required or permitted to be delivered for filing, $50;
86.5 	(5) for filing a certificate requesting authority to transact business in Minnesota as a 
86.6 	foreign limited partnership, $100 $110;
86.7 	(6) for filing an application of reinstatement, $25;
86.8 	(7) for filing a name reservation for a foreign limited partnership name, $35; and
86.9 	(8) for filing any other record, other than the annual renewal required by section 321.0210, 
86.10 	for which no fee must be charged, required or permitted to be delivered for filing on a 
86.11 	foreign limited partnership authorized to transact business in Minnesota, $50.

86.12 	Sec. 8. Minnesota Statutes 2024, section 322C.0201, subdivision 4, is amended to read:
86.13 		Subd. 4.Formation. (a) A limited liability company is formed when articles of 
86.14 	organization have been filed with the secretary of state accompanied by a payment of $135
86.15 	$145.
86.16 	(b) Except in a proceeding by this state to dissolve a limited liability company, the filing 
86.17 	of the articles of organization by the secretary of state is conclusive proof that the organizer 
86.18 	satisfied all conditions to the formation of a limited liability company.
86.19 	(c) The formation of a limited liability company does not by itself cause any person to 
86.20 	become a member. However, this chapter does not preclude an agreement, made before or 
86.21 	after formation of a limited liability company, which provides that one or more persons will 
86.22 	become members, or acknowledging that one or more persons became members, upon or 
86.23 	otherwise in connection with the formation of the limited liability company.

86.24 	Sec. 9. Minnesota Statutes 2024, section 322C.0802, is amended to read:
86.25 	322C.0802 APPLICATION FOR CERTIFICATE OF AUTHORITY.
86.26 	Before transacting business in this state, a foreign limited liability company shall obtain 
86.27 	a certificate of authority to transact business in this state by filing an application with the 
86.28 	secretary of state together with a total fee of $185 $195. The application must state:
86.29 	(1) the name of the company and any alternate name adopted pursuant to section 
86.30 	322C.0805, subdivision 1;
87.1 	(2) the name of the state or other jurisdiction under whose law the company is formed;
87.2 	(3) a statement that the foreign limited liability company has complied with the 
87.3 	organizational laws in the jurisdiction under whose laws the company is formed;
87.4 	(4) the street address of the company's principal place of business and, if the law of the 
87.5 	jurisdiction under which the company is formed requires the company to maintain an office 
87.6 	in that jurisdiction, the street address of the required office; and
87.7 	(5) the name and street address of the company's initial registered office and agent for 
87.8 	service of process in this state.

87.9 	Sec. 10. Minnesota Statutes 2024, section 323A.0101, is amended to read:
87.10 	323A.0101 DEFINITIONS.
87.11 	In this chapter:
87.12 	(1) "Business" includes every trade, occupation, and profession.
87.13 	(2) "Debtor in bankruptcy" means a person who is the subject of:
87.14 	(i) an order for relief under title 11 of the United States Code or a comparable order 
87.15 	under a successor statute of general application; or
87.16 	(ii) a comparable order under federal, state, or foreign law governing insolvency.
87.17 	(3) "Distribution" means a transfer of money or other property from a partnership to a 
87.18 	partner in the partner's capacity as a partner or to the partner's transferee.
87.19 	(4) "Executed" means signed.
87.20 	(5) "Filed" or "filed with the secretary of state" means that a document meeting the 
87.21 	applicable requirements of this chapter, signed, and accompanied by a filing fee of $135
87.22 	$145, has been delivered to the secretary of state. The secretary of state shall endorse on 
87.23 	the document the word "Filed" and the month, day, and year of filing; record the document 
87.24 	in the Office of the Secretary of State; and return a document to the person who delivered 
87.25 	it for filing.
87.26 	(6) "Foreign limited liability partnership" means a partnership that:
87.27 	(i) is formed under laws other than the laws of this state; and
87.28 	(ii) has the status of a limited liability partnership under those laws.
88.1 	(7) "Limited liability partnership" means a partnership that has filed a statement of 
88.2 	qualification under section 323A.1001 and does not have a similar statement in effect in 
88.3 	any other jurisdiction.
88.4 	(8) "Partnership" means an association of two or more persons to carry on as co-owners 
88.5 	a business for profit, including a limited liability partnership, formed under section 
88.6 	323A.0202, predecessor law, or comparable law of another jurisdiction.
88.7 	(9) "Partnership agreement" means the agreement, whether written, oral, or implied, 
88.8 	among the partners concerning the partnership, including amendments to the partnership 
88.9 	agreement.
88.10 	(10) "Partnership at will" means a partnership in which the partners have not agreed to 
88.11 	remain partners until the expiration of a definite term or the completion of a particular 
88.12 	undertaking.
88.13 	(11) "Partnership interest" or "partner's interest in the partnership" means all of a partner's 
88.14 	interests in the partnership, including the partner's transferable interest and all management 
88.15 	and other rights.
88.16 	(12) "Person" means an individual, corporation, business trust, estate, trust, partnership, 
88.17 	association, joint venture, government, governmental subdivision, agency, or instrumentality, 
88.18 	or any other legal or commercial entity.
88.19 	(13) "Property" means all property, real, personal, or mixed, tangible or intangible, or 
88.20 	any interest in property.
88.21 	(14) "Record," "recorded," and "recording" mean that a certified copy of a statement 
88.22 	meeting the applicable requirements of this chapter as filed with the secretary of state has 
88.23 	been recorded in the office of the county recorder in the county in which the real property 
88.24 	affected by the statement is located or, if the real property is registered under chapter 508 
88.25 	or 508A, memorialized on the certificate of title for that property.
88.26 	(15) "Signed" means that:
88.27 	(i) the signature of a person has been written on a document, as provided in section 
88.28 	645.44, subdivision 14; and
88.29 	(ii) with respect to a document that may be filed with the secretary of state, the document 
88.30 	has been signed by a person authorized to do so by this chapter, by the partnership agreement, 
88.31 	or by a resolution approved as provided in the partnership agreement.
89.1 	A signature on a document may be a facsimile affixed, engraved, printed, placed, stamped 
89.2 	with indelible ink, transmitted by facsimile or electronically, or in any other manner 
89.3 	reproduced on the document.
89.4 	(16) "State" means a state of the United States, the District of Columbia, the 
89.5 	Commonwealth of Puerto Rico, or any territory or insular possession subject to the 
89.6 	jurisdiction of the United States.
89.7 	(17) "Statement" means a statement of partnership authority under section 323A.0303, 
89.8 	a statement of denial under section 323A.0304, a statement of dissociation under section 
89.9 	323A.0704, a statement of dissolution under section 323A.0805, a statement of merger 
89.10 	under section 323A.0907, a statement of qualification under section 323A.1001, a statement 
89.11 	of foreign qualification under section 323A.1102, or an amendment or cancellation of any 
89.12 	of the foregoing.
89.13 	(18) "Transfer" includes an assignment, conveyance, lease, mortgage, deed, and 
89.14 	encumbrance.

89.15 	ARTICLE 7
89.16 	LOCAL GOVERNMENT POLICY

89.17 	Section 1. Minnesota Statutes 2024, section 13D.02, subdivision 1, is amended to read:
89.18 		Subdivision 1.Conditions. (a) A meeting governed by section 13D.01, subdivisions 1, 
89.19 	2, 4, and 5, and this section may be conducted by interactive technology so long as:
89.20 	(1) all members of the body participating in the meeting, wherever their physical location, 
89.21 	can hear and see one another and can hear and see all discussion and testimony presented 
89.22 	at any location at which at least one member is present;
89.23 	(2) members of the public present at the regular meeting location of the body can hear 
89.24 	and see all discussion and testimony and all votes of members of the body;
89.25 	(3) at least one member of the body is physically present at the regular meeting location;
89.26 	and
89.27 	(4) all votes are conducted by roll call so each member's vote on each issue can be 
89.28 	identified and recorded; and.
89.29 	(5) each location at which a member of the body is present is open and accessible to the 
89.30 	public.
90.1 	(b) A meeting satisfies the requirements of paragraph (a), although a member of the 
90.2 	public body participates from a location that is not open or accessible to the public, if the 
90.3 	member has not participated more than three times in a calendar year from a location that 
90.4 	is not open or accessible to the public, and:
90.5 	(1) the member is serving in the military and is at a required drill, deployed, or on active 
90.6 	duty; or
90.7 	(2) the member has been advised by a health care professional against being in a public 
90.8 	place for personal or family medical reasons.

90.9 	Sec. 2. Minnesota Statutes 2024, section 13D.02, subdivision 4, is amended to read:
90.10 		Subd. 4.Notice of regular and all member meeting locations. If interactive technology 
90.11 	is used to conduct a regular, special, or emergency meeting, the public body shall provide 
90.12 	notice of the regular meeting location and notice of any location where a member of the 
90.13 	public body will be participating the fact that members may participate in the meeting by 
90.14 	interactive technology, except for the locations of members participating pursuant to 
90.15 	subdivision 1, paragraph (b). The timing and method of providing notice of the regular 
90.16 	meeting location must be as described in section 13D.04.

90.17 	Sec. 3. Minnesota Statutes 2024, section 222.37, subdivision 1, is amended to read:
90.18 		Subdivision 1.Use requirements. (a) Any water power, telegraph, telephone, pneumatic 
90.19 	tube, pipeline, community antenna television, cable communications or electric light, heat, 
90.20 	power company, entity that receives a route permit under chapter 216E for a high-voltage 
90.21 	transmission line necessary to interconnect an electric power generating facility with 
90.22 	transmission lines or associated facilities of an entity that directly, or through its members 
90.23 	or agents, provides retail electric service in the state, or fire department may use public 
90.24 	roads for the purpose of constructing, using, operating, and maintaining lines, subways, 
90.25 	canals, conduits, transmission lines, hydrants, or dry hydrants, for their business, but such 
90.26 	lines shall be so located as in no way to interfere with the safety and convenience of ordinary 
90.27 	travel along or over the same; and, in the construction and maintenance of such line, subway, 
90.28 	canal, conduit, transmission lines, hydrants, or dry hydrants, the entity shall be subject to 
90.29 	all reasonable regulations imposed by the governing body of any county, town or city in 
90.30 	which such public road may be. If the governing body does not require the entity to obtain 
90.31 	a permit, an entity shall notify the governing body of any county, town, or city having 
90.32 	jurisdiction over a public road prior to the construction or major repair, involving extensive 
90.33 	excavation on the road right-of-way, of the entity's equipment along, over, or under the 
91.1 	public road, unless the governing body waives the notice requirement. A waiver of the 
91.2 	notice requirement must be renewed on an annual basis. For emergency repair an entity 
91.3 	shall notify the governing body as soon as practical after the repair is made. Nothing herein 
91.4 	shall be construed to grant to any person any rights for the maintenance of a telegraph, 
91.5 	telephone, pneumatic tube, community antenna television system, cable communications 
91.6 	system, or light, heat, power system, electric power generating system, high-voltage 
91.7 	transmission line, or hydrant system within the corporate limits of any city until such person 
91.8 	shall have obtained the right to maintain such system within such city or for a period beyond 
91.9 	that for which the right to operate such system is granted by such city.
91.10 	(b) Any public water district, sewer district, or combination water and sewer district 
91.11 	established under chapter 116A may install water and sewer lines and all other ancillary 
91.12 	infrastructure within a public road right-of-way in accordance with paragraph (a).

91.13 	Sec. 4. Minnesota Statutes 2024, section 331A.10, subdivision 2, is amended to read:
91.14 		Subd. 2.Discontinuance. (a) When a newspaper ceases to be published before the 
91.15 	publication of a public notice is commenced, or when commenced ceases before the 
91.16 	publication is completed, the following procedures apply: (1) when the publication is required 
91.17 	by court order, the order for publication, when one is required in the first instance, may be 
91.18 	amended by order of the court or judge, to designate another newspaper, as may be necessary. 
91.19 	If no order is required in the first instance,; or (2) when the publication is required by law, 
91.20 	rule, or ordinance, the publication may be made or completed in any other qualified 
91.21 	newspaper.
91.22 	(b) If no qualified newspaper is available for publication of a public notice after the 
91.23 	discontinuance of a newspaper, the political subdivision must post the information required 
91.24 	to be published on the political subdivision's website until another qualified newspaper is 
91.25 	identified, which shall then be designated. During the time when no qualified newspaper is 
91.26 	available, the political subdivision must also post the public notice on the Minnesota 
91.27 	Newspaper Association's statewide public notice website, at no additional cost to the political 
91.28 	subdivision.
91.29 	(c) Any time during which the notice is published in the first a newspaper prior to its 
91.30 	discontinuance shall be calculated as a part of the time required for the publication, proof 
91.31 	of which may be made by affidavit of any person acquainted with the facts.

91.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

92.1 	Sec. 5. Minnesota Statutes 2024, section 367.36, subdivision 1, is amended to read:
92.2 		Subdivision 1.Transition; audit. (a) In a town in which option D is adopted, the 
92.3 	incumbent treasurer shall continue in office until the expiration of the term. Thereafter, or 
92.4 	at any time a vacancy other than a temporary vacancy under section 367.03 occurs in the 
92.5 	position, the duties of the treasurer prescribed by law shall be performed by the clerk who 
92.6 	shall be referred to as the clerk-treasurer. If option D is adopted at an election in which the 
92.7 	treasurer is also elected, the election of the treasurer's position is void.
92.8 	(b) If the offices of clerk and treasurer are combined and the town's annual revenue for 
92.9 	all governmental and enterprise funds combined is more than the amount in paragraph (c), 
92.10 	the town board shall provide for an annual audit of the town's financial affairs by the state 
92.11 	auditor or a public accountant in accordance with minimum audit procedures prescribed by 
92.12 	the state auditor. If the offices of clerk and treasurer are combined and the town's annual 
92.13 	revenue for all governmental and enterprise funds combined is the amount in paragraph (c) 
92.14 	or less, the town board shall provide for an audit of the town's financial affairs by the state 
92.15 	auditor or a public accountant in accordance with minimum audit procedures prescribed by 
92.16 	the state auditor at least once every five years, which audit shall be for a one-year period 
92.17 	to be determined at random by the person conducting the audit. Upon completion of an 
92.18 	audit by a public accountant, the public accountant shall forward a copy of the audit to the 
92.19 	state auditor. For purposes of this subdivision, "public accountant" means a certified public 
92.20 	accountant or a certified public accounting firm licensed in accordance with chapter 326A.
92.21 	(c) For the purposes of paragraph (b), the amount in 2004 2025 is $150,000 $1,000,000, 
92.22 	and in 2005 and after, $150,000 is adjusted annually thereafter for inflation using the annual 
92.23 	implicit price deflator for state and local expenditures as published by the United States 
92.24 	Department of Commerce.

92.25 	EFFECTIVE DATE. This section is effective August 1, 2025, and applies to audits 
92.26 	performed for 2026 and thereafter.

92.27 	Sec. 6. [383A.151] RAMSEY COUNTY ECONOMIC DEVELOPMENT 
92.28 	AUTHORITY.
92.29 		Subdivision 1.Creation. (a) There is created in the county of Ramsey a public body, 
92.30 	corporate and politic, known as the Ramsey County Economic Development Authority, 
92.31 	that has the powers contained in sections 469.090 to 469.108, except for sections 469.101, 
92.32 	subdivision 19, 469.102, and 469.107; the powers of a housing and redevelopment authority 
92.33 	under sections 469.001 to 469.047; and the powers of a city under sections 469.124 to 
92.34 	469.133. For purposes of applying chapter 469 to the county of Ramsey, the county has all 
93.1 	the powers and duties of a city; the county board has all the powers and duties of a governing 
93.2 	body; the chair of the county board has all the powers and duties of a mayor; and, with 
93.3 	respect to the exercise of the powers under section 469.008, the area of operation includes 
93.4 	the area within the territorial boundaries of the county.
93.5 	(b) Section 469.1082 does not apply to the county of Ramsey, except for section 
93.6 	469.1082, subdivision 5.
93.7 		Subd. 2.Commissioners. Notwithstanding the provisions of chapter 469 or other law 
93.8 	to the contrary, the Ramsey County Economic Development Authority consists of seven 
93.9 	commissioners. The county board must appoint the commissioners and fill vacancies in the 
93.10 	office of any commissioner. Pursuant to Ramsey County Resolution No. 94-357, dated July 
93.11 	26, 1994, the Ramsey County Board of Commissioners also constitutes the Ramsey County 
93.12 	Housing and Redevelopment Authority. The board may, by resolution, appoint the sitting 
93.13 	commissioners of the Ramsey County Housing and Redevelopment Authority as 
93.14 	commissioners of the Ramsey County Economic Development Authority, the terms of each 
93.15 	commissioner corresponding accordingly.

93.16 	EFFECTIVE DATE. This section is effective the day after the governing body of 
93.17 	Ramsey County and its chief clerical officer comply with Minnesota Statutes, section 
93.18 	645.021, subdivisions 2 and 3.

93.19 	Sec. 7. [383A.152] RAMSEY COUNTY HOUSING AND REDEVELOPMENT 
93.20 	AUTHORITY; ADDITIONAL POWERS.
93.21 	The Ramsey County Housing and Redevelopment Authority, established pursuant to 
93.22 	Ramsey County Resolution No. 93-155, dated March 9, 1993, shall have the powers and 
93.23 	duties of the Ramsey County Economic Development Authority under section 383A.151 
93.24 	and shall retain all the powers of a housing and redevelopment authority under sections 
93.25 	469.001 to 469.047. For purposes of applying chapter 469 to the county of Ramsey, the 
93.26 	county has all the powers and duties of a city; the county board has all the powers and duties 
93.27 	of a governing body; the chair of the county has all the powers and duties of a mayor; and, 
93.28 	with respect to the exercise of the powers under section 469.008, the area of operation 
93.29 	includes the area within the territorial boundaries of the county.

93.30 	EFFECTIVE DATE. This section is effective the day after the governing body of 
93.31 	Ramsey County and its chief clerical officer comply with Minnesota Statutes, section 
93.32 	645.021, subdivisions 2 and 3.

94.1 	Sec. 8. Minnesota Statutes 2024, section 383C.035, is amended to read:
94.2 	383C.035 UNCLASSIFIED CIVIL SERVICE.
94.3 	(a) The officers and employees of the county and of any agency, board, or commission, 
94.4 	supported in whole or in part by taxation upon the taxable property of the county or appointed 
94.5 	by the judges of the district court for the county, are divided into the unclassified and 
94.6 	classified service.
94.7 	(b) The unclassified service comprises:
94.8 	(1) all officers elected by popular vote or persons appointed to fill vacancies in such 
94.9 	offices;
94.10 	(2) superintendent or principal administrative officer or comptroller of any separate 
94.11 	department of county government which is now or hereafter created pursuant to law, who 
94.12 	is directly responsible to the board of county commissioners or any other board or 
94.13 	commission, as well as the county agricultural agents reporting to the county extension 
94.14 	committee;
94.15 	(3) members of nonpaid board, or commissioners appointed by the board of county 
94.16 	commissioners or acting in an advisory capacity;
94.17 	(4) assistant county attorneys or special investigators in the employ of the county attorney. 
94.18 	For purposes of this section, special investigators are defined as all nonclerical positions in 
94.19 	the employ of the county attorney;
94.20 	(5) all common labor temporarily employed on an hourly basis;
94.21 	(6) not more than a total of nine full-time equivalent clerical employees serving the 
94.22 	county board and administrator;
94.23 	(7) a legislative lobbyist/grant coordinator appointed by the county board to act as 
94.24 	legislative liaison with the St. Louis County legislative delegation and pursue legislative 
94.25 	concerns and grant opportunities for the county, and the clerk for that position;
94.26 	(8) any department head and deputy director designated by the county board;
94.27 	(9) three administrative assistants in the county administrator's office;
94.28 	(10) the county administrator and two deputy administrators; and
94.29 	(11) all court bailiffs.
94.30 	(c) The classified service includes all other positions now existing and hereinafter created 
94.31 	in the service of the county or any board or commission, agency, or offices of the county.

95.1 	Sec. 9. Minnesota Statutes 2024, section 412.02, subdivision 3, is amended to read:
95.2 		Subd. 3.Clerk, treasurer combined; audit standards. (a) In cities operating under 
95.3 	the standard plan of government the council may by ordinance adopted at least 60 days 
95.4 	before the next regular city election combine the offices of clerk and treasurer in the office 
95.5 	of clerk-treasurer, but such an ordinance shall not be effective until the expiration of the 
95.6 	term of the incumbent treasurer or when an earlier vacancy occurs. After the effective date 
95.7 	of the ordinance, the duties of the treasurer and deputy treasurer as prescribed by this chapter 
95.8 	shall be performed by the clerk-treasurer or a duly appointed deputy. The offices of clerk 
95.9 	and treasurer may be reestablished by ordinance.
95.10 	(b) If the offices of clerk and treasurer are combined as provided by this section and the 
95.11 	city's annual revenue for all governmental and enterprise funds combined is more than the 
95.12 	amount in paragraph (c), the council shall provide for an annual audit of the city's financial 
95.13 	affairs by the state auditor or a public accountant in accordance with minimum auditing 
95.14 	procedures prescribed by the state auditor. If the offices of clerk and treasurer are combined 
95.15 	and the city's annual revenue for all governmental and enterprise funds combined is the 
95.16 	amount in paragraph (c), or less, the council shall provide for an audit of the city's financial 
95.17 	affairs by the state auditor or a public accountant in accordance with minimum audit 
95.18 	procedures prescribed by the state auditor at least once every five years, which audit shall 
95.19 	be for a one-year period to be determined at random by the person conducting the audit.
95.20 	(c) For the purposes of paragraph (b), the amount in 2004 2025 is $150,000 $1,000,000, 
95.21 	and in 2005 and after, $150,000 is adjusted annually thereafter for inflation using the annual 
95.22 	implicit price deflator for state and local expenditures as published by the United States 
95.23 	Department of Commerce.

95.24 	EFFECTIVE DATE. This section is effective August 1, 2025, and applies to audits 
95.25 	performed for 2026 and thereafter.

95.26 	Sec. 10. Minnesota Statutes 2024, section 412.591, subdivision 3, is amended to read:
95.27 		Subd. 3.Audit standards if combined. (a) If the offices of clerk and treasurer are 
95.28 	combined as provided by this section, and the city's annual revenue for all governmental 
95.29 	and enterprise funds combined is more than the amount in paragraph (b), the council shall 
95.30 	provide for an annual audit of the city's financial affairs by the state auditor or a certified 
95.31 	public accountant in accordance with minimum procedures prescribed by the state auditor. 
95.32 	If the offices of clerk and treasurer are combined and the city's annual revenue for all 
95.33 	governmental and enterprise funds combined is the amount in paragraph (b), or less, the 
95.34 	council shall provide for an audit of the city's financial affairs by the state auditor or a 
96.1 	certified public accountant in accordance with minimum audit procedures prescribed by the 
96.2 	state auditor at least once every five years, which audit shall be for a one-year period to be 
96.3 	determined at random by the person conducting the audit.
96.4 	(b) For the purposes of paragraph (a), the amount in 2004 2025 is $150,000 $1,000,000, 
96.5 	and in 2005 and after, $150,000is adjusted annually thereafter for inflation using the annual 
96.6 	implicit price deflator for state and local expenditures as published by the United States 
96.7 	Department of Commerce.

96.8 	EFFECTIVE DATE. This section is effective August 1, 2025, and applies to audits 
96.9 	performed for 2026 and thereafter.

96.10 	Sec. 11. Minnesota Statutes 2024, section 466.01, subdivision 1, is amended to read:
96.11 		Subdivision 1.Municipality. For the purposes of sections 466.01 to 466.15, 
96.12 	"municipality" means any city, whether organized under home rule charter or otherwise, 
96.13 	any county, town, public authority, public corporation, nonprofit firefighting corporation 
96.14 	that has associated with it a relief association as defined in section 424A.001, subdivision 
96.15 	4, special district, school district, however organized, public water or sewer system formed 
96.16 	under chapter 116A, county agricultural society organized pursuant to chapter 38, joint 
96.17 	powers board or organization created under section 471.59 or other statute, public library, 
96.18 	regional public library system, multicounty multitype library system, the following local 
96.19 	collaboratives whose plans have been approved by the Children's Cabinet: family services 
96.20 	collaboratives established under section 142D.15, children's mental health collaboratives 
96.21 	established under sections 245.491 to 245.495, or a collaborative established by the merger 
96.22 	of a children's mental health collaborative and a family services collaborative, other political 
96.23 	subdivision, community action agency, or a limited partnership in which a community action 
96.24 	agency is the sole general partner.

96.25 	EFFECTIVE DATE. This section is effective August 1, 2025, and applies to causes 
96.26 	of action accruing on or after that date.

96.27 	Sec. 12. [471.3458] VOLUNTEER EMERGENCY SERVICES PROVIDERS; TIRE 
96.28 	PURCHASES.
96.29 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
96.30 	the meanings given.
96.31 	(b) "Fire department" has the meaning given in section 299N.01, subdivision 2.
96.32 	(c) "Municipality" means a statutory or home rule charter city or a town.
97.1 	(d) "Volunteer emergency services provider" means a volunteer firefighter, as defined 
97.2 	in section 299N.03, subdivision 7; volunteer ambulance attendant, as defined in section 
97.3 	144E.001, subdivision 15; volunteer paramedic; or any other volunteer emergency medical 
97.4 	personnel performing emergency medical services for a municipality or fire department.
97.5 		Subd. 2.Tire purchases. A municipality or fire department may authorize a volunteer 
97.6 	emergency services provider who has performed services for the municipality or fire 
97.7 	department for at least three years and who is currently performing services for the 
97.8 	municipality or fire department to purchase up to four vehicle tires for one personal vehicle 
97.9 	owned by the volunteer emergency services provider every three years under a contract for 
97.10 	tires from which the municipality or fire department purchases vehicle tires. The volunteer 
97.11 	emergency services provider must pay for any tires purchased under this section, including 
97.12 	all applicable taxes and fees.
97.13 		Subd. 3.Authorization requirements. (a) The authorization by a municipality or fire 
97.14 	department to purchase tires under this section must be in writing on the municipality's or 
97.15 	fire department's letterhead and include the following:
97.16 	(1) the volunteer emergency services provider's name;
97.17 	(2) the number of years the volunteer emergency services provider has performed services 
97.18 	for the municipality or fire department;
97.19 	(3) the license plate number of the personal vehicle on which the tires will be placed; 
97.20 	and
97.21 	(4) a reference to the contract under which the municipality or fire department purchases 
97.22 	vehicle tires.
97.23 	(b) The municipality or fire department must document how many tires each volunteer 
97.24 	emergency services provider purchases during the periods specified in this section.

97.25 	Sec. 13. Minnesota Statutes 2024, section 477A.017, subdivision 3, is amended to read:
97.26 		Subd. 3.Conformity. Other law to the contrary notwithstanding, in order to receive 
97.27 	distributions under sections 477A.011 to 477A.03, counties and, cities, and towns must 
97.28 	conform to the standards set in subdivision 2 in making all financial reports required to be 
97.29 	made to the state auditor.

98.1 	Sec. 14. REPEALER.
 98.2 	(a) Minnesota Statutes 2024, sections 383C.07; and 383C.74, subdivisions 1, 2, 3, and 
98.3 	4, are repealed.
98.4 	(b) Minnesota Statutes 2024, section 471.9998, is repealed.

	ARTICLE 1	STATE GOVERNMENT AND ELECTIONS APPROPRIATIONS........	Page.Ln 2.2	
	ARTICLE 2	STATE GOVERNMENT POLICY........	Page.Ln 18.2	
	ARTICLE 3	STATE PERSONNEL MANAGEMENT........	Page.Ln 46.2	
	ARTICLE 4	LICENSING BOARDS........	Page.Ln 64.13	
	ARTICLE 5	MINNESOTA BUSINESS FILING FRAUD PREVENTION ACT........	Page.Ln 76.1	
	ARTICLE 6	BUSINESS FILING FEES........	Page.Ln 83.13	
	ARTICLE 7	LOCAL GOVERNMENT POLICY........	Page.Ln 89.15	

APPENDIX 

Repealed Minnesota Statutes: S3045-1 

16B.328 OUTDOOR LIGHTING FIXTURES MODEL ORDINANCE.Subd. 2.Model ordinance. 
The commissioner of administration, in consultation with the commissioner of commerce, associations for local governments, and any other interested person, shall develop a model ordinance that can be adapted for use by cities, counties, and towns, governing outdoor lighting to reduce light pollution. The model ordinance must address: 

(1) standards for lighting on private property; outdoor advertising; lighting on commercial, industrial, or institutional property; canopies covering fueling stations; and public streets, sidewalks, and alleys; 

(2) how illumination levels should be measured; 

(3) possible exemptions, such as for temporary emergency or hazard lighting; 

(4) recommended elements for an exterior lighting plan for a development; 

(5) treatment of nonconforming lighting; 

(6) lighting standards that might apply in special subdistricts; 

(7) light pole maximum heights; and 

(8) light trespass. 

16B.45 FUNCTION OF LEGISLATIVE AUDITOR.
The legislative auditor may conduct performance evaluations of all systems analysis, information services, and computerization efforts of agencies, the University of Minnesota, and metropolitan boards, agencies, and commissions. Upon request of the governing body or the state Information Systems Advisory Council, the legislative auditor shall conduct the same services for political subdivisions of the state and report the findings to the governor and the legislature. The cost of these evaluations must be paid by the agencies being evaluated. 

16C.36 REORGANIZATION SERVICES UNDER MASTER CONTRACT.
The commissioner of administration must make available under a master contract program a list of eligible contractors who can assist state agencies in using data analytics to: 

(1) accomplish agency reorganization along service rather than functional lines in order to provide more efficient and effective service; and 

(2) bring about internal reorganization of management functions in order to flatten the organizational structure by requiring that decisions are made closer to the service needed, eliminating redundancies, and optimizing the span of control ratios to public and private sector industry benchmarks. 

43A.315 STATE EMPLOYEE EFFICIENT USE OF HEALTH CARE INCENTIVE PROGRAM.
The commissioner of management and budget may develop and implement a program that creates an incentive for efficient use by state employees of State Employee Group Insurance Program (SEGIP). The program may reward employees covered by SEGIP as a group if per capita employee health care costs paid by SEGIP for a calendar year prove to be less than estimated by the commissioner prior to the beginning of the calendar year. The reward may consist of payments of one-half of the cost-savings into the employees' health reimbursement accounts, to be made no later than June 30 of the following calendar year. 

43A.317 MINNESOTA EMPLOYEES INSURANCE PROGRAM.Subdivision 1.Intent. 
The legislature finds that the creation of a statewide program to provide employers with the advantages of a large pool for insurance purchasing would advance the welfare of the citizens of the state. 

Subd. 2.Definitions. 
(a) Scope. For the purposes of this section, the terms defined have the meaning given them. 

(b) Commissioner. "Commissioner" means the commissioner of management and budget. 

(c) Eligible employee. "Eligible employee" means an employee eligible to participate in the program under the terms described in subdivision 6. 

(d) Eligible employer. "Eligible employer" means an employer eligible to participate in the program under the terms described in subdivision 5. 

(e) Eligible individual. "Eligible individual" means a person eligible to participate in the program under the terms described in subdivision 6. 

(f) Employee. "Employee" means an employee of an eligible employer. "Employee" includes a sole proprietor, partner of a partnership, member of a limited liability company, or independent contractor. 

(g) Employer. "Employer" means a private person, firm, corporation, partnership, limited liability company, association, or other entity actively engaged in business or public services. "Employer" includes both for-profit and nonprofit entities. 

(h) Program. "Program" means the Minnesota employees insurance program created by this section. 

Subd. 3.Administration. 
After consulting with the chairs of the senate Governmental Operations and Veterans Committee and the house of representatives Governmental Operations and Veterans Affairs Policy Committee, the commissioner may determine when the program provided under this section is available. When the commissioner makes the program available, the commissioner shall, consistent with the provisions of this section, administer the program and determine its coverage options, funding and premium arrangements, contractual arrangements, and all other matters necessary to administer the program. The commissioner's contracting authority for the program, including authority for competitive bidding and negotiations, is governed by section 43A.23. 

Subd. 5.Employer eligibility. 
(a) Procedures. All employers are eligible for coverage through the program subject to the terms of this subdivision. The commissioner shall establish procedures for an employer to apply for coverage through the program. 

(b) Term. The initial term of an employer's coverage may be for up to two years from the effective date of the employer's application. After that, coverage will be automatically renewed for an additional term unless the employer gives notice of withdrawal from the program according to procedures established by the commissioner or the commissioner gives notice to the employer of the discontinuance of the program. The commissioner may establish conditions under which an employer may withdraw from the program prior to the expiration of a term, including by reason of an increase in health coverage premiums of 50 percent or more from one insurance year to the next. An employer that withdraws from the program may not reapply for coverage for a period of time equal to its initial term of coverage. 

(c) Minnesota work force. An employer is not eligible for coverage through the program if five percent or more of its eligible employees work primarily outside Minnesota, except that an employer may apply to the program on behalf of only those employees who work primarily in Minnesota. 

(d) Employee participation; aggregation of groups. An employer is not eligible for coverage through the program unless its application includes all eligible employees who work primarily in Minnesota, except employees who waive coverage as permitted by subdivision 6. Private entities that are eligible to file a combined tax return for purposes of state tax laws are considered a single employer, except as otherwise approved by the commissioner. 

(e) Private employer. A private employer is not eligible for coverage unless it has two or more eligible employees in the state of Minnesota. If an employer has only two eligible employees and one is the spouse, child, sibling, parent, or grandparent of the other, the employer must be a Minnesota-domiciled employer and have paid Social Security or self-employment tax on behalf of both eligible employees. 

(f) Minimum participation. The commissioner must require as a condition of employer eligibility that at least 75 percent of its eligible employees who have not waived coverage participate in the program. The participation level of eligible employees must be determined at the initial offering of coverage and at the renewal date of coverage. For purposes of this section, waiver of coverage includes only waivers due to coverage under another group health benefit plan. 

(g) Employer contribution. The commissioner must require as a condition of employer eligibility that the employer contribute at least 50 percent toward the cost of the premium of the employee and may require that the contribution toward the cost of coverage is structured in a way that promotes price competition among the coverage options available through the program. 

(h) Enrollment cap. The commissioner may limit employer enrollment in the program if necessary to avoid exceeding the program's reserve capacity. 

Subd. 6.Individual eligibility. 
(a) Procedures. The commissioner shall establish procedures for eligible employees and other eligible individuals to apply for coverage through the program. 

(b) Employees. An employer shall determine when it applies to the program the criteria its employees must meet to be eligible for coverage under its plan. An employer may subsequently change the criteria annually or at other times with approval of the commissioner. The criteria must provide that new employees become eligible for coverage after a probationary period of at least 30 days, but no more than 90 days. 

(c) Other individuals. An employer may elect to cover under its plan: 

(1) the spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision 2a, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required in sections 62A.042 and 62A.302; 

(2) a retiree who is eligible to receive a pension or annuity from the employer and a covered retiree's spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision 2a, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required in sections 62A.042 and 62A.302; 

(3) the surviving spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision 2a, disabled children, and dependent grandchildren of a deceased employee or retiree, if the spouse, children, or grandchildren were covered at the time of the death; 

(4) a covered employee who becomes disabled, as provided in sections 62A.147 and 62A.148; or 

(5) any other categories of individuals for whom group coverage is required by state or federal law. 

An employer shall determine when it applies to the program the criteria individuals in these categories must meet to be eligible for coverage. An employer may subsequently change the criteria annually, or at other times with approval of the commissioner. The criteria for dependent children to the limiting age as defined in section 62Q.01, subdivision 2a, disabled children, and dependent grandchildren may be no more inclusive than the criteria under section 43A.18, subdivision 2. This paragraph shall not be interpreted as relieving the program from compliance with any federal and state continuation of coverage requirements. 

(d) Waiver and late entrance. An eligible individual may waive coverage at the time the employer joins the program or when coverage first becomes available. The commissioner may establish a preexisting condition exclusion of not more than 18 months for late entrants as defined in section 62L.02, subdivision 19. 

(e) Continuation coverage. The program shall provide all continuation coverage required by state and federal law. 

Subd. 7.Coverage. 
 Coverage is available through the program beginning on July 1, 1993. Until an arrangement is in place to provide coverage through a transfer of risk to one or more carriers regulated under chapter 62A, 62C, or 62D, the commissioner shall solicit bids under section 43A.23, from carriers regulated under chapters 62A, 62C, and 62D, to provide coverage of eligible individuals. The commissioner shall provide coverage through contracts with carriers, unless the commissioner receives no reasonable bids from carriers. 

(a) Health coverage. Health coverage is available to all employers in the program. The commissioner shall attempt to establish health coverage options that have strong care management features to control costs and promote quality and shall attempt to make a choice of health coverage options available. Health coverage for a retiree who is eligible for the federal Medicare program must be administered as though the retiree is enrolled in Medicare parts A and B. To the extent feasible as determined by the commissioner and in the best interests of the program, the commissioner shall model coverage after the plan established in section 43A.18, subdivision 2. Health coverage must include at least the benefits required of a carrier regulated under chapter 62A, 62C, or 62D for comparable coverage. Coverage under this paragraph must not be provided as part of the health plans available to state employees. 

(b) Optional coverages. In addition to offering health coverage, the commissioner may arrange to offer dental coverage through the program. Employers with health coverage may choose to offer dental coverage according to the terms established by the commissioner. 

(c) Open enrollment. The program must meet all underwriting requirements of chapter 62L and must provide periodic open enrollments for eligible individuals for those coverages where a choice exists. 

(d) Technical assistance. The commissioner may arrange for technical assistance and referrals for eligible employers in areas such as health promotion and wellness, employee benefits structure, tax planning, and health care analysis services as described in section 62J.2930. 

Subd. 8.Premiums. 
(a) Payments. Employers enrolled in the program shall pay premiums according to terms established by the commissioner. If an employer fails to make the required payments, the commissioner may cancel coverage and pursue other civil remedies. 

(b) Rating method. The commissioner shall determine the premium rates and rating method for the program. The rating method for eligible small employers must meet or exceed the requirements of chapter 62L. The rating methods must recover in premiums all of the ongoing costs for state administration and for maintenance of a premium stability and claim fluctuation reserve. On June 30, 1999, after paying all necessary and reasonable expenses, the commissioner must apply up to $2,075,000 of any remaining balance in the Minnesota employees' insurance trust fund to repayment of any amounts drawn or expended for this program from the health care access fund. 

(c) Taxes and assessments. To the extent that the program operates as a self-insured group, the premiums paid to the program are not subject to the taxes imposed by chapter 297I, but the program is subject to a Minnesota Comprehensive Health Association assessment under section 62E.11. 

Subd. 9.Minnesota employees insurance trust fund. 
(a) Contents. The Minnesota employees insurance trust fund in the state treasury consists of deposits received from eligible employers and individuals, contractual settlements or rebates relating to the program, investment income or losses, and direct appropriations. 

(b) Appropriation. All money in the fund is appropriated to the commissioner to pay insurance premiums, approved claims, refunds, administrative costs, and other costs necessary to administer the program. 

(c) Reserves. For any coverages for which the program does not contract to transfer full financial responsibility, the commissioner shall establish and maintain reserves: 

(1) for claims in process, incomplete and unreported claims, premiums received but not yet earned, and all other accrued liabilities; and 

(2) to ensure premium stability and the timely payment of claims in the event of adverse claims experience. The reserve for premium stability and claim fluctuations must be established according to the standards of section 62C.09, subdivision 3, except that the reserve may exceed the upper limit under this standard until July 1, 1997. 

(d) Investments. The State Board of Investment shall invest the fund's assets according to section 11A.24. Investment income and losses attributable to the fund must be credited to the fund. 

Subd. 10.Program status. 
The Minnesota employees insurance program is a state program to provide the advantages of a large pool to small employers for purchasing health coverage, other coverages, and related services from insurance companies, health maintenance organizations, and other organizations. The program is not an insurance company. Coverage under this program shall be considered a certificate of insurance or similar evidence of coverage and is subject to all applicable requirements of chapters 60A, 62A, 62C, 62E, 62H, 62L, and 72A, and is subject to regulation by the commissioner of commerce to the extent applicable. 

Subd. 12.Status of agents. 
Notwithstanding sections 60K.49 and 72A.07, the program may use, and pay referral fees, commissions, or other compensation to, agents licensed as insurance producers under chapter 60K or licensed under section 62C.17, regardless of whether the agents are appointed to represent the particular health carriers or community integrated service networks that provide the coverage available through the program. When acting under this subdivision, an agent is not an agent of the health carrier or community integrated service network, with respect to that transaction. 

43A.318 PUBLIC EMPLOYEES GROUP LONG-TERM CARE INSURANCE PROGRAM.Subdivision 1.Definitions. 
(a) Scope. For the purposes of this section, the terms defined have the meanings given them. 

(b) Eligible person. "Eligible person" means: 

(1) a person who is eligible for insurance and benefits under section 43A.24; 

(2) a person who at the time of separation from employment was eligible to purchase coverage at personal expense under section 43A.27, subdivision 3, regardless of whether the person elected to purchase this coverage; 

(3) a spouse of a person described in clause (1) or (2), regardless of the enrollment status in the program of the person described in clause (1) or (2); or 

(4) a parent of a person described in clause (1), regardless of the enrollment status in the program of the person described in clause (1). 

(c) Program. "Program" means the statewide public employees long-term care insurance program created under subdivision 2. 

(d) Qualified vendor. "Qualified vendor" means an entity licensed or authorized to underwrite, provide, or administer group long-term care insurance benefits in this state. 

Subd. 2.Program creation; general provisions. 
(a) The commissioner may administer a program to make long-term care coverage available to eligible persons. The commissioner may determine the program's funding arrangements, request bids from qualified vendors, and negotiate and enter into contracts with qualified vendors. Contracts are not subject to the requirements of section 16C.16 or 16C.19. Contracts must be for a uniform term of at least one year, but may be made automatically renewable from term to term in the absence of notice of termination by either party. The program may not be self-insured until the commissioner has completed an actuarial study of the program and reported the results of the study to the legislature and self-insurance has been specifically authorized by law. 

(b) The program may provide coverage for home, community, and institutional long-term care and any other benefits as determined by the commissioner. Coverage is optional. The enrolled eligible person must pay the full cost of the coverage. 

(c) The commissioner shall promote activities that attempt to raise awareness of the need for long-term care insurance among residents of the state and encourage the increased prevalence of long-term care coverage. These activities must include the sharing of knowledge gained in the development of the program. 

(d) The commissioner may employ and contract with persons and other entities to perform the duties under this section and may determine their duties and compensation consistent with this chapter. 

(e) The benefits provided under this section are not terms and conditions of employment as defined under section 179A.03, subdivision 19, and are not subject to collective bargaining. 

(f) The commissioner shall establish underwriting criteria for entry of all eligible persons into the program. Eligible persons who would be immediately eligible for benefits may not enroll. 

(g) Eligible persons who meet underwriting criteria may enroll in the program upon hiring and at other times established by the commissioner. 

(h) An eligible person enrolled in the program may continue to participate in the program even if an event, such as termination of employment, changes the person's employment status. 

(i) Participating public employee pension plans and public employers may provide automatic pension or payroll deduction for payment of long-term care insurance premiums to qualified vendors contracted with under this section. 

(j) The premium charged to program enrollees must include an administrative fee to cover all program expenses incurred in addition to the cost of coverage. All fees collected are appropriated to the commissioner for the purpose of administrating the program. 

Subd. 4.Long-term care insurance trust fund. 
(a) The long-term care insurance trust fund in the state treasury consists of deposits of the premiums received from persons enrolled in the program. All money in the fund is appropriated to the commissioner to pay premiums, claims, refunds, administrative costs, and other related service costs. The commissioner shall reserve an amount of money sufficient to cover the actuarially estimated costs of claims incurred but unpaid. The trust fund must be used solely for the purpose of the program. 

(b) The State Board of Investment shall invest the money in the fund according to section 11A.24. Investment income and losses attributable to the fund must be credited to or deducted from the fund. 

Subd. 5.Private sources. 
This section does not prohibit or limit individuals or local governments from purchasing long-term care insurance through other private sources. 

211B.06 FALSE POLITICAL AND CAMPAIGN MATERIAL.Subdivision 1.Gross misdemeanor. 
(a) A person is guilty of a gross misdemeanor who intentionally participates in the preparation, dissemination, or broadcast of paid political advertising or campaign material with respect to the personal or political character or acts of a candidate, or with respect to the effect of a ballot question, that is designed or tends to elect, injure, promote, or defeat a candidate for nomination or election to a public office or to promote or defeat a ballot question, that is false, and that the person knows is false or communicates to others with reckless disregard of whether it is false. 

(b) A person is guilty of a misdemeanor who intentionally participates in the drafting of a letter to the editor with respect to the personal or political character or acts of a candidate, or with respect to the effect of a ballot question, that is designed or tends to elect, injure, promote, or defeat any candidate for nomination or election to a public office or to promote or defeat a ballot question, that is false, and that the person knows is false or communicates to others with reckless disregard of whether it is false. 

Subd. 2.Exception. 
Subdivision 1 does not apply to any person or organization whose sole act is, in the normal course of their business, the printing, manufacturing, or dissemination of the false information. 

211B.08 SOLICITATION OF CONTRIBUTIONS PROHIBITED.
A religious, charitable, or educational organization may not request a candidate or committee to contribute to the organization, to subscribe for the support of a club or organization, to buy tickets to entertainment, or to pay for space in a publication. This section does not apply to: 

(1) the solicitation of a business advertisement in periodicals in which the candidate was a regular contributor, before candidacy; 

(2) ordinary business advertisements; 

(3) regular payments to a religious, charitable, or educational organization, of which the candidate was a member, or to which the candidate was a contributor for more than six months before candidacy; or 

(4) ordinary contributions at church services. 

383C.07 MEMBERS OF BOARDS AND COMMISSIONS; TERMS OF OFFICE.
Notwithstanding the provisions of any law to the contrary, in St. Louis County every lay member hereafter appointed by the county board to any board or commission heretofore or hereafter created by law, shall be appointed for a term of three years. 

383C.74 HISTORICAL WORK.Subdivision 1.Appropriation. 
The St. Louis County Board may appropriate from the treasury of the county a sum not to exceed $2,500 each year for the promotion of historical work within its borders. 

Subd. 2.Minnesota State Historical Society. 
Said sum shall be so appropriated for the use of a historical society organized in said county and devoted to the collection, preservation and publication of historical material, the dissemination of historical information and in general carrying on historical work, said society to be designated by the Minnesota State Historical Society. 

Subd. 3.Purpose of appropriation. 
The work of said historical society shall be done in the county making such appropriation and in reference to the history of said county and all facts relevant thereto. 

Subd. 4.Money to remain in county treasury. 
The money appropriated as aforesaid shall remain in the treasury of the county and be paid out in payment of expense incurred by said county historical society for the purposes above indicated on verified bills approved by said local society according to its rules, in the same way that county bills are paid. Said appropriation shall be available for expense occurring in any year although not paid until the succeeding year. Any unused portion of any appropriation for any year shall revert to the funds of the county. Said appropriation shall be effective only for the year in which it is made. 

471.9998 MERCHANT BAGS.Subdivision 1.Merchant option. 
All merchants, itinerant vendors, and peddlers doing business in this state shall have the option to provide customers a paper, plastic, or reusable bag for the packaging of any item or good purchased, provided such purchase is of a size and manner commensurate with the use of paper, plastic, or reusable bags. 

Subd. 2.Prohibition; bag ban. 
Notwithstanding any other provision of law, no political subdivision shall impose any ban upon the use of paper, plastic, or reusable bags for packaging of any item or good purchased from a merchant, itinerant vendor, or peddler. 

Repealed Minnesota Session Laws: S3045-1 

Laws 2024, chapter 120, article 3, section 2
Sec. 2. Minnesota Statutes 2023 Supplement, section 155A.2705, subdivision 3, is amended to read:Subd. 3.Training. 
Hair technician training must be completed at a Minnesota-licensed cosmetology school. The training must consist of 900 hours of coursework and planned clinical instruction and experience that includes: 

(1) the first 300 hours of the hair technology course that includes: 

(i) student orientation; 

(ii) preclinical instruction in the theory of sciences, including: 

(A) muscle and bone structure and function; 

(B) properties of the hair, a study of all hair types and textures, including coil, curl, or wave patterns, hair strand thicknesses, and volumes of hair, and scalp; 

(C) disorders and diseases of the hair and scalp; 

(D) chemistry as related to hair technology; and 

(E) electricity and light related to the practice of hair technology; 

(iii) theory and preclinical instruction on client and service safety prior to students offering services; 

(iv) introductory service skills that are limited to the observation of an instructor demonstration, student use of mannequins, or student-to-student application of basic services related to hair technology; 

(v) Minnesota statutes and rules pertaining to the regulation of hair technology; 

(vi) health and safety instruction that includes: 

(A) chemical safety; 

(B) safety data sheets; 

(C) personal protective equipment (PPE); 

(D) hazardous substances; and 

(E) laws and regulations related to health and public safety; and 

(vii) infection control to protect the health and safety of the public and technician that includes: 

(A) disinfectants; 

(B) disinfectant procedures; 

(C) cleaning and disinfection; 

(D) single use items; 

(E) storage of tools, implements, and linens; and 

(F) other implements and equipment used in salons and schools; 

(2) 300 hours in hair cutting and styling that includes hair and scalp analysis,; providing services to individuals who have all hair types and textures, including coil, curl, or wave patterns, hair strand thicknesses, and volumes of hair; cleaning,; scalp and hair conditioning,; hair design and shaping,; drying,; arranging,; curling,; dressing,; waving,; and nonchemical straightening; and 

(3) 300 hours in chemical hair services that includes hair and scalp analysis,; providing services to individuals with all hair types and textures, including coil, curl, or wave patterns, hair strand thicknesses, and volumes of hair; dying,; bleaching,; reactive chemicals,; keratin,; hair coloring,; permanent straightening,; permanent waving,; predisposition and strand tests,; safety precautions,; chemical mixing,; color formulation,; and the use of dye removers. 

EFFECTIVE DATE. 
This section is effective August 1, 2025. 

1105.7900SUBSTANTIAL EQUIVALENCY. D.
 Individuals required by Minnesota Statutes, section 326A.14, subdivision 1, paragraph (b), to obtain a verification that their individual qualifications are substantially equivalent to the licensure requirements of Minnesota Statutes, section 326A.03, subdivisions 3, 4, and 6, shall obtain the verification from the NASBA National Qualification Appraisal Service prior to rendering professional services in this state. Documentation supporting this verification must be maintained by the individual for a minimum period of six years and must be submitted to the board upon request.